Stifel raised its price target for “buy-rated” Reata Pharmaceuticals (NASDAQ:RETA) to $50 from $38 after the company reported statistically significant improvements in kidney function from the Phase 2 portion of its Cardinal study evaluating BARD in Alport chronic kidney disease (CKD). The stock closed at $37.66 on July 24.
Analyst Adam Walsh writes that the drug had a clean safety profile, with no evidence of fluid overload.
“We view these data as thesis confirming and in-line with prior key opinion leader feedback … that BARD will not only prove safe and effective in Alport CKD, but also has the potential to broadly address both orphan and non-orphan CKD,” he added.
Based on these data, the company has initiated screening in the Phase 3 portion of the Cardinal trial and is planning to launch additional Phase 2 studies in rare renal diseases during the first half of 2018.
