Credit Suisse Initiates Ra Pharmaceuticals Inc (RARX) With a Buy

By Carrie Williams

credit-suisse-initiates-ra-pharmaceuticals-inc-rarx-with-a-buyIn a their report released today, Credit Suisse initiates coverage on the biopharmaceutical company Ra Pharmaceuticals Inc. (NASDAQ: RARX) with a Buy rating and $19 price target. The PT is an upside of 42.75% from the last close price of the stock.

RARX’s lead product candidate RA101495 is intended for the treatment of chronic, life-threatening, blood disorder called paroxysmal nocturnal hemoglobinuria (PNH). RA101495 is a convenient self-administered subcutaneous 9SC) injection and is projected as a direct competitor for the drug soliris from Alexion Pharmaceuticals Inc. (ALXN).

RARX had launched its IPO last month and raised $92 million from the initial public offering of 7 million common shares at $13 per share on Nasdaq. This IPO was intended to support the ongoing development of RA101495.

Analyst Kennen MacKay believes that the ease of use, depth of complement inhibition, and durability of RA101495 would make it stand apart from its current competitors like Soliris, as well as next generation competitors like ALXN1210. MacKay expects RA101495 to capture more than 30% market share in patients with unmet need despite Soliris treatment.

RA101495 had successfully completed its phase 1 trials, and RARX is expected to initiate the Phase II trials in the 1Q2017 with data to be released in the 2H17. The company also plan to initiate a Phase 2 clinical trial with RA101495 for rMG (refractory myasthenia gravis) and a Phase 1b clinical trial in LN (lupus nephritis) in the second half of 2017.

In yet another positive news, the European Commission had recently designated RA101495 as an Orphan Drug for the treatment of PNH, which would give a 10-year period of market exclusivity in the EU, if the approval goes through for RA101495.

Credit Suisse’s Kennen MacKay is currently one of the top 10 analysts on TipRanks.com with a five-star ranking. MacKay has an 88% success rate in issuing profitable ratings, and a 30.3% return on average.