SRRA - CTI BioPharma: A Speculative Buy Into The PDUFA Date

• We are initiating with CTI BioPharma with a buy rating with a TP of USD 7.6 if pacritinib is approved.
• We opine that CTI BioPharma's current set-up represents an attractive risk-reward scenario with ~50% potential downside (around cash value of $1/share) and ~320% potential upside (bull case $7.6 if approved).
• We like the clinical data that pacritinib has produced, targeting a niche MF patient population where Jakafi can't be used.
• FDA delay is likely a minor issue, and we expect the drug to receive the FDA's stamp of approval soon on Feb. 28th.

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