archeo753 wrote: From Today's Globe and Mail.
Theratechnologies Inc.'s (TH-T) new Trogarzo medication appears to be a “unique” addition to the treatment options of HIV physicians in the wake of a “promising” initial commercial launch, said RBC Capital Markets analyst Brian Abrahams.
"The March U.S. approval of Trogarzo for multi-drug resistant (MDR) HIV provides favorable diversification for TH’s HIV product offerings and synergizes with its expanded Egrifta salesforce, providing near-immediate accretion," he said. "In our view and based on KOL [Key Opinion Leaders] feedback, the drug's novel MOA, clean safety profile, lack of drug-drug interactions, and clear efficacy in this high unmet need population are all favorable attributes that should be well received. Initial launch dynamics look promising, with 100 new patients (in addition to 62 transitioning from the EAP) coming onto treatment in the first several months."
Initiating coverage of the Montreal-based company with a "sector perform" rating, Mr. Abrahams said he sees many "push and pulls" that will affect Trogarzo's revenue potential.
"We view Trogarzo's novel MOA, clean safety profile, clear efficacy, and unmet need as all favorable attributes that bolster the armamentarium of physicians treating HIV; however, we see key uncertainties surrounding MDR epidemiology, compliance and logistical hurdles with IV and the target population, and competition that could potentially limit the peak opportunity, which is reduced by economics with partner TaiMed," he said. "Therefore, we believe shares fairly value the potential Trogarzo opportunity and additional Egrifta sales."
He set a price target for Theratechnologies shares of $11, which falls below the current consensus of $15.85.
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