BioTuesdays

Roth ups CymaBay price target to $6

Roth Capital Partners raised its price target for CymaBay Therapeutics (NASDAQ:CBAY) to $6 from $4, citing a potential partnership for the company’s gout product. The stock closed at $1.79 on Thursday.

“Following conversations with management, we are more confident that CymaBay could ink a partnership for arhalofenate (gout) in the coming six-to-12 months,” writes analyst Sa’ar Yaniv.

“We believe a partnership would bridge the catalyst gap until additional data can be gleaned from MBX-8025’s primary biliary cholangitis/homozygous familial hypercholesterolemia (PBC/HoFH) programs; enhance CymaBay’s coffers, allowing it to advance the above programs; and increase confidence in management’s execution,” he added.

Arhalofenate (gout) is Phase 3-ready following end-of-Phase 2 discussions with the FDA.

“The drug has been studied in over 1,100 patients and we believe that it has substantial value that would be unlocked by a partnership,” Mr. Yaniv said. In addition, “we believe that the company is discussing potential terms, an additional indication that discussions are progressing.”

Subscribe

Sign up to our weekly BioTuesdays newsletter.

Subscribe

Sign up to our weekly BioTuesdays newsletter.