Roth Capital has downgraded Durata Therapeutics Inc (NASDAQ:DRTX) from a Buy rating to Neutral. Roth maintains their 12 month price target of $23 on the stock. Ed Arce, the analyst at Roth believes that the deal will close by the end of the year with Actavis. Shares of Durata Therapeutics Inc (DRTX) were unchanged pre-market on the downgrade. DRTX will report quarterly earnings on November 3rd before market open."More than a week after Durata signed a definitive agreement to be acquired by Actavis, we see no signs that a competitive bid may emerge, nor had we expected any. Further, we believe both sides are well-motivated to close the deal by year end. As such, we downgrade the shares to Neutral as we expect DRTX to continue to trade within a narrow range around $23 through deal closure. With few large strategic buyers in the market with complementary infectious disease (ID) assets, we see little likelihood of a competing bid emerging."
Durata Therapeutics Inc (NASDAQ:DRTX) is developing Dalvance (dalbavancin), an intravenous antibiotic, approved in the US for the treatment of patients with acute bacterial skin and skin structure infections, or ABSSSI, caused by Gram-positive bacteria, such as S. aureus, including Methicillin-Resistant and multi-drug resistant strains, and certain streptococcal species. Dalbavancin is a second generation, semi-synthetic lipoglycopeptide designed for once-weekly intravenous dosing which may facilitate the treatment of patients with ABSSSI in both the inpatient and out-patient settings, reducing the length of a patient’s hospital stay or avoiding hospital admission altogether and, ultimately, lowering the overall cost of care for these patients.
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