Cantor ups Provention Bio PT on FDA T1D approval

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Cantor Fitzgerald raised its price target for Provention Bio (NASDAQ:PRVB) to $16 from $12 and maintained an “overweight” rating after the FDA approved teplizumab (brand name, TZIELD) to delay the onset of Type 1 diabetes (T1D) in at-risk Stage 2 patients. The stock was quoted at $8.11 in afternoon trading on Nov. 18.

“We believe the label is clean and in-line with expectations, with no restrictions on use related to family history and no black-box,” writes analyst Prakhar Agrawal.

“Pricing came in significantly above our expectations at a list price of $13,850/vial or $194,000/one-time course,” he added.

Mr. Agrawal suggests that the near-term investor focus is less on initial launch numbers and more on the potential valuation of teplizumab in an out-licensing deal scenario.

“Our initial high-level sensitivity analysis suggests valuation could be in the range of $1.5-billion to $2-billion.” he added.