Brookline Capital Markets raised its price target for CTI Biopharma (NASDAQ:CTIC) to $12 from $7.20 after the FDA approved Vonjo in myelofibrosis. The stock closed at $3.10, up $1.20, on volume of 108 million shares on March 1.
Analyst Leah Cann writes that the prescribing label, with no black box warning and an indication for intermediate or high-risk primary or secondary myelofibrosis is better than anticipated.
“Based on the label, we adjusted our outlook to include more patients from the second-line setting expected to be treated with Vonjo, or pacritinib,” she added.
Myelofibrosis is a type of bone marrow cancer that disrupts the body’s normal production of blood cells. The disease causes extensive scarring in bone marrow, leading to severe anemia that can cause weakness and fatigue.
Ms. Cann said investigator comments, describing pacritinib as a “new standard of care” for myelofibrosis patients suffering from cytopenic myelofibrosis, makes the case for rapid adoption of pacritinib.
In addition to a strong label, the announced price for Vonjo is 35% higher than Ms. Cann had estimated. She estimates Vonjo will launch before the end of the first quarter of 2022 and CTI will turn income positive in 2022.
“Our outlook does not currently include any sales in the acute graft-versus-host disease settings or off-label sales in myelofibrosis, which could provide upside to our outlook,” she added.
