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.
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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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
