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by InsideTrade Staff on September 15, 2015

Raptor Pharmaceutical Corp. (NASDAQ:RPTP) said its potential liver disease drug failed to meet key treatment goals

Raptor Pharmaceutical Corp. (NASDAQ:RPTP) plunged after the drug developer said its potential liver disease drug failed to meet key treatment goals in a pivotal study and it could end the development program.

The stock fell $3.95, or 33 percent, to $8.08 in premarket trading Monday about an hour ahead of the market open.

The drug candidate RP103 was being developed as a treatment for nonalcoholic steatohepatitis, or NASH, in children. The condition resembles alcoholic liver disease, but is unrelated to drinking alcohol. It involves fat in the liver along with liver inflammation.

The Phase 2b, or midstage, study involved 169 children taking different doses of RP103 or placebo.

Were disappointed with this outcome given the paucity of treatment for these children with NASH, said Raptor President and CEO Julie Anne Smith, in a statement.

She said the company would likely stop development of the program based on the results. It will continue to develop RP103 as a potential treatment for other rare conditions.

Raptors drugs on the market currently include Procysbi, which treats the genetic condition nephropathic cystinosis.

Raptor Pharmaceutical Equity Analysis

Raptor Pharmaceutical Corp. (NASDAQ:RPTP) opened trading today as $7.00 and is trading in the range of 6.83-9.06 today. Raptor Pharmaceutical’s current market cap stands at $568.25 million.

Compared to other peers in the Biotechnology sector, Raptor Pharmaceutical has outperformed in terms of quarterly revenue growth year over year at 0.43 vs. the industry average of 0.19. Raptor Pharmaceutical’s earnings per share is currently at -0.85, which is below then the sector average of -0.33.

Raptor Pharmaceutical is currently covered by 8 Wall Street analysts. The mean target price is $18.00 according to First Call. This presents a solid upside to the current price of the equity. The Mean Recommendation sits at 2.5 which is based on 3 Strong Buy, 2 Buy and 1 Hold ratings.

The most recent analyst actions consisted of FBR Capital initiating the stock on August 11th.

The current quarter EPS consensus estimate is -0.18 with revenue estimates of 24.27M. Sales are expected to grow at a 2.10% rate. Raptor Pharmaceutical reported actual earnings last quarter of -0.17 which beats the -0.21 consensus estimate, a 19.00% surprise.

Corporate Profile

Raptor Pharmaceutical Corp., a biopharmaceutical company, focuses on developing and commercializing life-altering therapeutics that treat debilitating and often fatal diseases. The company offers PROCYSBI, a delayed-release capsule, which is used for the management of nephropathic cystinosis in adults, as well as in six years and older children in the United States, in the 28 member states of the European Union, Norway, Liechtenstein, and Iceland. Its clinical development programs include RP103 that is used as a treatment for Huntingtons disease; RP103 as a treatment for non-alcoholic fatty liver disease in children; and RP103 as a treatment for mitochondrial disorders, including Leigh syndrome. The company’s other clinical-stage product candidates comprise Convivia, an oral formulation of 4-methylpyrazole for the treatment of acetaldehyde toxicity resulting from aldehyde dehydrogenase deficiency. Its preclinical product candidates include cysteamine dioxygenase and HepTide for the treatment of hepatocellular carcinoma and other cancers susceptible to induced lysosomal storage.

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