H.C. Wainwright Initiates a Buy Rating on Iterum Therapeutics Plc (ITRM)

By Ryan Adsit

In a report released today, Ed Arce from H.C. Wainwright initiated coverage with a Buy rating on Iterum Therapeutics Plc (ITRMResearch Report) and a price target of $17. The company’s shares closed yesterday at $6.60.

Arce commented:

“Valuation We employ a rNPV model, shown below, to value ITRM at $17 per share. We estimate the current risk- adjusted per-share value of sulopenem across its three indications: (1) $6.44 for cUTI (68% POS; $244M peak revenues in 2035); (2) $5.31 for uUTI (65% POS; $179M peak sales in 2035); and (3) $5.46 for cIAI (68% POS; $153M peak sales in 2035).”

According to TipRanks.com, Arce is a 4-star analyst with an average return of 7.8% and a 37.3% success rate. Arce covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Arcturus Therapeutics Ltd, and Melinta Therapeutics Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Iterum Therapeutics Plc with a $18 average price target.

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Based on Iterum Therapeutics Plc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $20.58 million. In comparison, last year the company had a GAAP net loss of $12.15 million.

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Iterum Therapeutics Plc is a clinical-stage pharmaceutical company, which engages in the development and commercialization of treatments for drug resistant bacterial infections. It focuses on sulopenem program that offer a solution to the problem of antibiotic resistance, and the toxicity limitations of existing agents.