H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Innoviva today and set a price target of $45.00.
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Ram Selvaraju has given his Buy rating due to a combination of factors including the promising clinical trial results for Innoviva’s investigational antibiotic, zoliflodacin. The drug demonstrated positive outcomes in a Phase 3 trial for treating uncomplicated urogenital gonorrhea, with results published in The Lancet, a prestigious medical journal. This trial, which was the largest of its kind for a new gonorrhea treatment, showed zoliflodacin to be non-inferior to the current standard treatment, ceftriaxone and azithromycin, and was well-tolerated by patients.
Additionally, the urgency of addressing drug-resistant infections, as highlighted by the World Health Organization, adds to the potential impact of zoliflodacin. The FDA has granted the drug a Qualified Infectious Disease Product designation, which includes benefits like Priority Review and extended market exclusivity. With an imminent regulatory decision expected, Selvaraju assigns a high probability of approval, viewing zoliflodacin as a significant value driver for Innoviva, thereby supporting the Buy rating.