Bank of America Securities analyst Tazeen Ahmad maintained a Hold rating on PTC Therapeutics (PTCT – Research Report) yesterday and set a price target of $55.00.
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Tazeen Ahmad has given his Hold rating due to a combination of factors surrounding PTC Therapeutics’ current clinical developments and financial outlook. The company’s recent Phase 2 trial results for PTC518 in Huntington’s disease showed mixed outcomes, particularly in the clinical scales used to measure efficacy. While the treatment demonstrated some potential in lowering mutant huntingtin protein, the inconsistency in clinical benefits and lack of a clear dose response in Stage 3 patients raises concerns about the likelihood of accelerated approval by the FDA.
Additionally, while the safety profile of PTC518 appears favorable, with no treatment-related serious adverse events, the mixed clinical signals suggest that a full Phase 3 trial may be necessary to fully validate the drug’s efficacy. The valuation of PTC Therapeutics is primarily based on current commercial revenues and potential future approvals, with the upcoming PKU launch being a significant focus. These factors contribute to maintaining a Neutral stance, reflecting both the potential and the uncertainties in the company’s pipeline.
Ahmad covers the Healthcare sector, focusing on stocks such as Alnylam Pharma, Incyte, and Sarepta Therapeutics. According to TipRanks, Ahmad has an average return of -2.7% and a 47.53% success rate on recommended stocks.
In another report released yesterday, Leerink Partners also reiterated a Hold rating on the stock with a $52.00 price target.