PRTK - Paratek a new buy at Jefferies on growing antibiotics business

2023-05-02 10:20:56 ET

• Jefferies has initiated Paratek Pharmaceuticals ( NASDAQ: PRTK ) with a buy rating saying that it is poised to benefit from its growing antibiotics franchise.
• The firm set a price target of $5 (~216% upside based on Monday's close).
• Analyst Kambiz Yazdi said that he sees a 25% increase in the Nuzrya (omadacycline) franchise this year compared to last with sales in bacterial skin and pneumonia infections growing to a peak of ~$300M.
• Yazdi added that M. abscessus data expected in in H1 2024 could help with its cash runway and get the company on the path towards profitability. He sees an 80% probability of success in this indication.
• Also, Yazdi noted that Paratek ( PRTK ) benefits from a relationship with HHS' Biomedical Advanced Research and Development Authority (BARDA) to provide antibacterials for stockpiling in the future.
• Read why Seeking Alpha's Quant Rating considers Paratek ( PRTK ) a strong sell.

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