We have maintained an Outperform recommendation on Optimer Pharmaceuticals, Inc. (OPTR) with a target price of $9.00 per share.
We find the US Food and Drug Administration’s (FDA) approval of Optimer’s first drug, antibiotic Dificid, for the treatment of clostridium difficile-associated diarrhea (CDAD), highly encouraging. Dificid was launched in July 2011.
CDAD is the most common nosocomial or hospital-acquired diarrhea and is a significant malaise in hospitals and nursing home facilities. Dificid (twice daily tablets) is the first drug to be approved in almost 25 years for the treatment of CDAD and thus targets a market with significant unmet need.
Dificid is the only drug that has shown superiority over ViroPharma’s (VPHM) Vancocin — the other FDA approved antibiotic for the treatment of clostridium difficile infection — in sustaining clinical response for CDAD. The superior recurrence benefits of Dificid over Vancocin will be included in the label, which we believe is of great importance for Dificid sales as it provides a clear differentiation from existing options. This will provide valuable benefit and help Dificid sales.
Optimer has an agreement with Astellas Pharma, where in the latter will commercialize Dificid in Europe and certain other countries in the Middle East, Africa and Commonwealth of Independent States (CIS). Optimer holds the rights to Dificid elsewhere. We believe Astellas is an ideal partner for Optimer in Europe because of prior experience in commercializing anti-infective drugs like Mycamine, Avelox and Vivotif.
Optimer has an exclusive two-year agreement with Cubist Pharmaceuticals (CBST) to co-promote Dificid in the US. Optimer plans to market the drug to physicians, hospitals, long-term care facilities and other healthcare institutions with the help of Cubist’s existing US hospital sales force and medical affairs team, which hold experience in marketing Cubist’s lead antibiotic Cubicin for the treatment of complicated skin infections. We expect the deals with Astellas and Cubist to maximize the impact of the commercial launch of Dificid.
On the whole, the very bullish scenario surrounding Optimer evokes our Outperform recommendation.
CUBIST PHARM (CBST): Free Stock Analysis Report
OPTIMER PHARMAC (OPTR): Free Stock Analysis Report
VIROPHARMA (VPHM): Free Stock Analysis Report
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