Achaogen Receives a Buy from Needham

By Austin Angelo

Needham analyst Alan Carr reiterated a Buy rating on Achaogen (NASDAQ: AKAO) today and set a price target of $29. The company’s shares opened today at $23.31.

Carr wrote:

“Achaogen mgmt provided a 4Q16 corporate update yesterday. Company remains on track for plazomicin NDA submission 2H17. Details around manufacturing/ CMC were provided, including role for Pfizer McPherson facility in fill/ finish. An FDA Warning Letter was issued to Pfizer last month for matters unrelated to plazomicin at facility. We assume resolution is likely before PDUFA date in 2018. We await additional information on new oral beta-lactam/ BLI cUTI program (C-Scape), but believe commercial opportunity for oral drug in this indication is one of most attractive areas in antibiotic space.”

According to, Carr is a 5-star analyst with an average return of 10.8% and a 47.1% success rate. Carr covers the Healthcare sector, focusing on stocks such as Catalyst Biosciences Inc, Lexicon Pharmaceuticals, and Aquinox Pharmaceuticals.

Currently, the analyst consensus on Achaogen is Strong Buy and the average price target is $29.60, representing a 27.0% upside.

In a report issued on March 3, SunTrust Robinson also maintained a Buy rating on the stock with a $31 price target.

Based on Achaogen’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $16.05 million and GAAP net loss of $11.04 million. In comparison, last year the company earned revenue of $4.66 million and had a GAAP net loss of $11.27 million.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AKAO in relation to earlier this year. Last month, Ian Friedland, the CMO of AKAO sold 1,026 shares for a total of $23,352.

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Achaogen, Inc. operates as a clinical-stage biopharmaceutical company. The firm discovers, develops, and commercializes novel antibacterials to treat multi-drug resistant (MDR) gram-negative infections. It also offers plazomicin for the treatment of serious bacterial infections due to MDR enterobacteriaceae, including carbapenem-resistant enterobacteriaceae. The company was founded in June 2002 and is headquartered in South San Francisco, CA.