CTI BioPharma (CTIC) PT Raised to $12 at Brookline Capital Markets Following FDA Approval
Brookline Capital Markets analyst Leah Rush Cann raised the price target on CTI BioPharma (NASDAQ: CTIC) to $12.00 (from $7.20) while maintaining a Buy rating following FDA approval for Pacritinib (Vonjo) in Myelofibrosis.
The analyst commented, "The timing of this FDA-approval is as expected and the prescribing label, with no black box warning and an indication for intermediate or high-risk primary or secondary (post-polycythemia vera or post-essential thrombocythemia) myelofibrosis (MF) with a platelet count below 50 × 109/L, and with safety information for MF with a platelet count below 100 × 109/L, is better than anticipated. Based on the label, we adjusted our outlook to include more patients from the second-line setting expected to be treated with pacritinib (Vonjo). Investigator comments, describing pacritinib as a new standard of care for myelofibrosis patients suffering from cytopenic myelofibrosis, makes the case for rapid adoption of pacritinib. In addition to a strong label, the announced price for pacritinib (Vonjo) is 35% higher than we had estimated. Based on our revised expectations for pacritinib in myelofibrosis (MF), we estimate pacritinib will launch before the end of Q1 2022 and will reach $671.3 million in 2026. We estimate that operating losses will end, and CTI will turn income positive in 2022. Our outlook does not currently include any sales in the acute graft-versus-host disease (GVHD) settings or off-label sales in MF, which could provide upside to our outlook. We rate CTI BioPharma with a Buy rating and 12-to-18-month target price of $12, raised from our prior $7.20."