ISA a mirror image come June 28th?Theratechnologies riding wave of optimism
Shares of Theratechnologies (TSX:TH (5.01 ?1.21%)) jumped Friday after an FDA advisory committee on Thursday evening unanimously recommended the FDA green light the company’s tesamorelin drug to treat excess abdominal fat in HIV-infected patients with lipodystrophy, based on a favourable benefit-risk profile.
The stock, which slumped earlier in the week after the committee’s briefing papers suggested Theratechnologies’ NDA could be in for a rough ride, was trading at $4.92, up 70% or $2.02, in heavy turnover Friday afternoon.
Many analysts raised their price targets Friday morning, restoring in many cases what they trimmed earlier in the week. The final FDA decision on marketing approval for tesamorelin is scheduled for July 27.
Analyst Connie Chen at Loewen, Ondaatje, McCutcheon, who earlier in the week called the stock “oversold,” raised her 12-month target to $8.50 from $7 after adjusting her valuation to reflect the improved risk profile by the committee’s recommendation and a shorter discount period. “This returns a share value of $8.54 (from $6.90), which could still easily increase under various scenarios,” she writes