UPDATE: Leerink Swann Reiterates on Cempra Driven by Solithromycin Updates

In a report published Monday, Leerink Swann analyst Marko Kozul reiterated an Outperform rating on Cempra (NASDAQ: CEMP), and raised the price target from $11.00 to $17.00.

In the report, Leerink Swann noted, “We are transitioning coverage of CEMP with a new DCF-based $17 price target (PT) and maintaining an Outperform (OP) rating. This is supported by recent encouraging MEDACorp KOL checks and positive blinded anecdotes CEMP has provided from its Solithromycin (CEM-101) SOLITAIRE-ORAL Phase III trial. While KOLs feedback has been positive for TAKSTA (CEM-102), we do not include it in our valuation, pending FDA guidance for a regulatory pathway forward. We anticipate CEMP will perform well moving into 2014 driven by: 1) a YE13 TAKSTA Phase II interim update; 2) mid-2014 Solithromycin SOLITAIREORAL Phase III trial top-line data, and: 3) updates for other initiatives such as initiation of a Solithromycin trial for Gonorrhea.”

Cempra closed on Friday at $11.70.