Roth Capital Partners has launched coverage of TetraLogic Pharmaceutics (NASDAQ:TLOG) with a “buy” rating and price target of $5. The stock closed at $1.42 on Wednesday.
Analyst Joseph Pantginis writes that TetraLogic is about to enter a critical time in its history. In January, the company is expected to report results of two Phase 2 studies, birinapant for Myelodysplastic Syndromes (MDS) and SHAPE for Cutaneous T-Cell Lymphoma (CTCL).
“We believe that data to date support a positive read out,” Mr. Pantginis said. “Should the studies yield positive data the company needs to address its current financing overhang and put the company’s assets on a pivotal path.”
Birinapant, a SMAC mimetic, targets a broadly used pathway used by cancer cells and infectious diseases to avoid apoptosis, or programmed cell death.
SHAPE data to date has shown strong efficacy in CTCL and, importantly, no observed systemic absorption, Mr. Pantginis said. The company also has an open IND to start a study in alopecia areata.
“Based on addressing funding needs and the clinical data generated to date, TetraLogic is gearing up to initiate two pivotal studies in 2016, one for birinapant in MDS and one for SHAPE in CTCL,” he added.
