Citi Launches Positive Coverage On Five Prime Therapeutics

Citi’s Robyn Karnauskas believes Five Prime Therapeutics Inc (NASDAQ: FPRX) has a trifecta of factors in its favor, including its “hot” immunoncology (I/O) target, a solid partner in Bristol-Myers Squibb Co (NYSE: BMY) and strong platform technology.

Karnauskas initiated coverage of Five Prime with a Buy rating and price target of $65.

Multiple Catalysts

The analyst believes the company has “multiple shots on goal in various cancers,” as well as a promising lead drug in Cabiralizumab, compelling data from FPA144 in gastric cancer, which provides valuation support and “unique platform technology validated by multiple collaborations.”

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Karnauskas said as combo data with Opdivo becomes available for Cabira in 2017, investors would be able to assign a higher value to the program and there could be potential upside of 35–65 percent to the stock valuation.

Cabira Potential

“All major I/O developers are testing checkpoint combos with CSF-1R and those data should also help validate mechanism” for Cabira, the analyst pointed out.

Karnauskas expects Cabira to achieve peak sales of $800 million, with upside due to the I/O opportunity.

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