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OPHT

Ophthotech

$43.57

-2.56 (-5.55%)

, REGN

Regeneron

$402.82

0.8 (0.20%)

10:26
10/04/16
10/04
10:26
10/04/16
10:26

Before the Move: Ophthotech worries seen as opportunity ahead of Phase 3 data

Regeneron Pharmaceuticals' (REGN) disappointing Phase 2 data evaluating aflibercept co-formulated with rinucumab in neovascular age-related macular degeneration, or AMD, released on Friday have been a drag on shares of Ophthotech (OPHT), which are down about 15% over the last few sessions. The latter is also focused on developing therapeutics for AMD, but JPMorgan analyst Anupam Rama believes the treatments being developed by the companies show "important differences." Further, the analyst recommended buying Ophthotech's shares amid the weakness ahead of its Phase 3 data, which is expected to be released before the end of the year. BACKGROUND: Ophthotech has initiated a pivotal Phase 3 clinical program to evaluate Fovista 1.5mg combination with anti-VEGF drugs compared to anti-VEGF monotherapy for the treatment of newly diagnosed patients with wet AMD, which is the more advanced type of the disease. Although it affects only 10%-15% of those who have the condition, it accounts for 90% of the severe vision loss caused by macular degeneration. BUY ON WEAKNESS: In a note to investors this morning, JPMorgan's Rama raised his price target for Ophthotech to $110 from $95, citing the elimination of its key competitor Regeneron from the Wet AMD space following its trial failure. Noting that Ophthotech's stock was down amid mechanism concerns following Regeneron's data, Rama said he views the weakness as a buying opportunity. Further, he sees "important mechanistic differences" between the company's Fovista and Regeneron's REGN2176-3, adding that early Phase 1 data for Fovista is "comparatively more compelling." Rama told investors that Ophthotech's Phase 3 results with Fovista and Lucentis combination therapy are expected this quarter, and reiterated an Outperform rating on the company's shares. COMPETITOR DATA: On Friday, Regeneron announced topline results from its Phase 2 CAPELLA study evaluating aflibercept co-formulated with rinucumab, an anti-platelet-derived growth factor receptor beta antibody, in patients with neovascular AMD. The combination therapy did not demonstrate an improvement in best corrected visual acuity compared to intravitreal aflibercept injection monotherapy at 12 weeks, the primary endpoint of the study. PRICE ACTION: In morning trading, shares of Ophthotech's shares have gained about 5.5% to $45.97, while Regeron's stock is flat near $402 per share. "Before the Move" is The Fly's recurring series of exclusive stories that identify potentially market moving events, along with analyst predictions, ahead of the news.

OPHT

Ophthotech

$43.57

-2.56 (-5.55%)

REGN

Regeneron

$402.82

0.8 (0.20%)

  • 30

    Oct

  • 29

    Mar

OPHT Ophthotech
$43.57

-2.56 (-5.55%)

06/02/16
JPMS
06/02/16
UPGRADE
Target $84
JPMS
Overweight
Ophthotech upgraded to Overweight from Neutral at JPMorgan
JPMorgan analyst Anupam Rama upgraded Ophthotech to Overweight saying the Fovista phase 3 Lucentis combination studies reading out in Q4 have a very high probability of success. The analyst's base case assumes a four-plus letter gain in visual acuity compared to Lucentis monotherapy, resulting in 55%-60% share upside. His "homerun scenario," or five-plus letter, results in 150% share upside. He raised his price target for Ophthotech shares to $84 from $60.
09/09/16
LEER
09/09/16
NO CHANGE
LEER
Leerink updates therapeutics best ideas for 2016
In a note to investors this morning, Leerink has updated its best ideas for 2016 from the firm's five therapeutics analysts. The list includes Alexion (ALXN), Dermira (DERM), Intra-Cellular (ITCI), Sanofi (SNY), Allergan (AGN), Alnylam (ALNY), Innate Pharma (IPHYF), The Medicines Co. (MDCO), and Ophthotech (OPHT).
09/30/16
COWN
09/30/16
NO CHANGE
Target $60
COWN
Outperform
Ophthotech price target lowered to $60 from $80 at Cowen
Cowen analyst Tyler Van Buren said that Regeneron's (REGN) Phase 2 data for aflibercept co-formulated with rinucumab is negative for the class of anti-PDGFs as a whole and lowered his price target on Ophthotech (OPHT) to $60 from $80 after lowering his view of the probability of the success of its own wet AMD treatment to 50%. However, if a 3-4 letter benefit if observed when the Phase III trials read out in December, upside of $80-$120 per share from current levels is still possible, said Van Buren, who keeps an Outperform rating on Ophthotech shares.
10/04/16
JPMS
10/04/16
NO CHANGE
Target $110
JPMS
Overweight
Ophthotech price target raised to $110 from $95 at JPMorgan
JPMorgan analyst Anupam Rama raised his price target for Ophthotech to $110 from $95 citing the elimination of Regeneron (REGN) from the Wet age-related macular degeneration space following its trial failure. Ophthotech closed yesterday down $2.56 to $43.57. The stock is down 20% since last Friday amid mechanism concerns following Regeneron's phase 2 data, Rama tells investors in a research note. The analyst views the weakness in Ophthotech as a buying opportunity. There are important mechanistic differences between the company's Fovista and Regeneron's REGN2176-3, and early phase 1 data for Fovista "are comparatively more compelling," the analyst contends. He points out that the Phase 3 results with Fovista + Lucentis combination therapy are expected this quarter. The analyst keeps an Overweight rating on Ophthotech.
REGN Regeneron
$402.82

0.8 (0.20%)

09/21/16
RBCM
09/21/16
NO CHANGE
RBCM
Regeneron Fasinumab deal positive, says RBC Capital
After Teva (TEVA) agreed to partner with Regeneron (REGN) on its Fasinumab pain killer, RBC Capital analyst Adrian Butt says that the deal validates the "under the radar" drug. The analyst says that Regeneron could make "many future deals" if its pipeline remains productive. Butt writes that the terms of the deal are attractive for Regeneon, and the analyst keeps a $648 price target and Outperform rating on the stock.
09/21/16
ROTH
09/21/16
NO CHANGE
Target $520
ROTH
Buy
Teva deal important for Regeneron, says at Roth Capital
Roth Capital analyst Joseph Pantginis points out that Regeneron (REGN) has signed a global partnership for fasinumab with Teva (TEVA), which he sees as an important new partnership for the former both on the product development front as well as a significant next step for fasinumab and the anti-NGF class of drugs. The analyst believes Regeneron has solid growth prospects and upside potential, and reiterates a Buy rating and $520 price target on the shares.
10/03/16
ROTH
10/03/16
NO CHANGE
Target $520
ROTH
Buy
Regeneron has 'solid' growth prospects, upside potential, says Roth Capital
After Regeneron (REGN) and Sanofi (SNY) released positive results from their Dupixent Phase 3 trials, SOLO 1 and SOLO in patients with atopic dermatitis, Roth Capital analyst Joseph Pantginis notes that clinical studies of Dupixent for additional atopic and allergic diseases are progressing and says he believes Regeneron's shares are poised for upside on upcoming catalysts. Moreover, the analyst says Regeneron has "solid" growth prospects based on approved and late stage products, deep pipeline, expansion of indications for current products, strong partners, and strong cash management. He reiterates a Buy rating and $520 price target on Regeneron's shares.

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