Wells Fargo keeps an Overweight rating and $68 price target on PTC Therapeutics (PTCT). Investors had been undervaluing the potential value of the company’s PTC518 Huntington’s Disease program, and the deal with Novatis (NVS) announced today recognizes a portion of that value upfront while also partially removing the near-term regulatory risk, the analyst tells investors in a research note. The deal’s $1.9B in milestones, 40% U.S. profit share, and double-digit royalties on ex-U.S. sales makes it a compelling agreement, the firm added.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on PTCT:
- RBC upgrades PTC Therapeutics on ‘transformative’ Novartis deal
- PTC Therapeutics upgraded to Outperform from Sector Perform at RBC Capital
- PTC Therapeutics Partners with Novartis for Huntington’s Program
- PTC Therapeutics enters global license, collaboration agreement with Novartis
- PTC Therapeutics Sells Priority Review Voucher for $150M