Mackie Research ups Theratechnologies to buy; holds PT at $6.50


Mackie Research upgraded Theratechnologies (TSX:TH; NASDAQ:THTX) to “buy” from “hold” but maintained its price target at $6.50 (Canadian), saying the current share price represents a favorable risk-reward situation based on the company’s growth outlook. The stock closed at $4.04 on Dec. 10.

Analyst André Uddin writes that the company is building a global brand with its Trogarzo treatment for HIV. In the U.S., the drug represents one of the very few treatment options for patients with multi-drug resistance HIV-1, he added.

“While Trogarzo’s sales ramp-up was below our initial expectations, we still believe its U.S. sales should continue climbing going forward,” Mr. Uddin said. The European Medicines Agency approved Trogarzo in September 2019 and the company should start launching Trogarzo in Europe by the end of 2019, he said, adding that Theratechnologies would be initially focused on securing reimbursement.

The company’s Egrifta drug is currently being marketed in the U.S. for HIV-related lipodystrophy. In November 2019, Theratechnologies launched a new formulation of the drug, Egrifta SV, which is more user friendly, which should help future prescription growth, Mr. Uddin said.

In 2019, Theratechnologies also reported promising data from a Phase 2 trial that tested Egrifta in treating HIV patients with NASH, “based on which, the company is to initiate a Phase 3 trial in the same patient population in the second half of 2020,” he added.