Paratek a new buy at Jefferies on growing antibiotics business
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- Jefferies has initiated Paratek Pharmaceuticals (NASDAQ:PRTK) with a buy rating saying that it is poised to benefit from its growing antibiotics franchise.
- The firm set a price target of $5 (~216% upside based on Monday's close).
- Analyst Kambiz Yazdi said that he sees a 25% increase in the Nuzyra (omadacycline) franchise this year compared to last with sales in bacterial skin and pneumonia infections growing to a peak of ~$300M.
- Yazdi added that M. abscessus data expected in H1 2024 could help with its cash runway and get the company on the path towards profitability. He sees an 80% probability of success in this indication.
- Also, Yazdi noted that Paratek (PRTK) benefits from a relationship with HHS' Biomedical Advanced Research and Development Authority (BARDA) to provide antibacterials for stockpiling in the future.
- Read why Seeking Alpha's Quant Rating considers Paratek (PRTK) a strong sell.