New Analyst Coverage: Thera "Speculative Buy"From Today's Globe and Mail:
Calling it an “innovative HIV drug developer,” Leede Jones Gable analyst Douglas Loe initiated coverage of Theratechnologies Inc. (
) with a “speculative buy” rating.
“Theratechnologies is a diversified pharma firm, with two specialty drugs Egrifta and Trogarzo already approved and targeting niche HIV indications (HIV lipodystrophy and multidrug-resistant HIV1 infection, respectively) with substantial quarterly revenue already being generated, if a bit below our original expectations for both drugs,” he said. “Egrifta is a stabilized, fatty-acid-derivatized analog of growth hormone-releasing factor that has documented impact on reducing visceral adipose tissue deposition in HIV1-infected individuals. Trogarzo is a partnered (with Taiwan-based TaiMed Biologics (4147-TW)) anti-CD4 mAb that targets CD4-positive/HIV1-infected T-cells and mitigates HIV1 infection in patients that are no longer responsive to two or more of the small-molecule anti-retroviral drugs that are conventionally used to treat disease. Pivotal Phase III data were positive and FDA approval-enabling, and both drugs are projected to contribute positively to revenue/EBITDA throughout our forecast period.”
He set a $4 target for shares of the Montreal-based company. The average on the Street is $5.90.
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