Company

Bank

Analyst

Coverage

Opinion

Wk chg

9/20 cls

Celldex Therapeutics Inc. (NASDAQ:CLDX)

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Howard Liang

Price target

Outperform

24%

$36.01

Liang raised his target to $45 from $28 ahead of first clinical data on the company's CDX-1127 to be presented at the Society for Immunotherapy of Cancer meeting in National Harbor, Md., in November. Celldex will present data from the solid tumor dose-escalation portion of a Phase I trial, as well as limited data from expansion cohorts of the trial in melanoma and renal cell carcinoma (RCC). Liang believes that any single-agent objective anti-tumor response could position CDX-1127 competitively for combination use with immune checkpoint inhibitors such as an anti-programmed cell death 1 ligand 1 (CD274 molecule; PD-L1; B7-H1). CDX-1127 is a human mAb targeting CD27.

Cubist Pharmaceuticals Inc. (NASDAQ:CBST)

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Marko Kozul

Upgrade

Outperform (from market perform)

3%

$64.90

Kozul also raised his price target to $76 from $57 following Cubist's acquisition of Trius Therapeutics Inc. earlier this month and the anticipated acquisition of partner Optimer Pharmaceuticals Inc. (NASDAQ:OPTR). He believes that Trius' tedizolid will add about $385M in revenue to Cubist by about 2018, with peak sales potential of about $631M. This half, Trius plans to submit an NDA to FDA for both an oral and IV formulation of the antibiotic to treat acute bacterial skin and skin structure infections (ABSSSI), with an MAA submission to EMA planned for 1H14. In August, Cubist said it will acquire partner Optimer in a cash and contingent value right (CVR) deal worth up to $801M (see BioCentury, Aug. 5 & Sept. 16). Kozul expects the deal to close by Oct. 25. He said that an acquisition of Optimer's Dificid fidaxomicin - which Cubist co-promotes with Optimer in the U.S. to treat Clostridium difficile-associated diarrhea (CDAD) - will add about $419M in revenue to Cubist by 2018, with peak sales potential of about $500M.