PTC Therapeutics selloff ‘not warranted,’ says Morgan Stanley

Morgan Stanley notes that PTC Therapeutics disclosed during a fireside chat at the Morgan Stanley Healthcare Conference that the FDA requested additional information for the Translarna NDA resubmission, adding that the firm was “surprised by the stock reaction on PTCT shares” as the firm, and most investors the analyst has spoken with in recent months, have been ascribing minimal value to Translarna in the U.S. given relatively low expectations for potential approval. The firm, which argues that a request for additional analyses without a refuse-to-file suggests the FDA is still willing to review the application, so it views the selloff as “not warranted” and keeps an Equal Weight rating and $32 price target on PTC shares.