Tetraphase Spikes on Encouraging Data on Antibiotic - Analyst Blog
Tetraphase Pharmaceuticals, Inc. (TTPH) was up 14.5% after the company announced positive top-line data from a phase III study evaluating eravacycline for the treatment of complicated intra-abdominal infection (cIAI).
The randomized, multi-center, double-blind, double-dummy, global phase III IGNITE 1 study compared the efficacy and safety of eravacycline with Merck & Co. Inc.’s (MRK) Invanz (ertapenem). In the study, eravacycline met the primary endpoint of statistical non-inferiority of clinical response at the test-of-cure visit as per the guidance set by regulatory authorities in the U.S. and Europe. No drug-related serious adverse events were observed in the study.
We note that the company is also conducting a two-part, randomized, multi-center, double-blind, phase III IGNITE 2 study comparing the efficacy and safety of eravacycline with Johnson & Johnson’s (JNJ) Levaquin (levofloxacin) in the treatment of complicated urinary tract infections (cUTI). Top-line data from the study is expected to mature in mid-2015.
Tetraphase is planning to apply for U.S. regulatory approval of the drug by the end of 2015.
Our Take
We are pleased with the positive top-line data on eravacycline for the cIAI indication. We note that the antibiotic space has come into focus with several mergers and acquisitions specifically targeting this therapeutic area. Merck’s buyout offer of Cubist Pharmaceuticals Inc. (CBST) earlier this month highlights this interest in antibiotics.
The companies have entered into a definitive agreement under which the Cubist will be acquired by Merck in a cash transaction valued at about $9.5 billion or $102 per share (read more: Cubist Shoots Up on $9.5 Billion Buyout Offer from Merck). We expect more such deals to occur in the near term.
Tetraphase carries a Zacks Rank #2 (Buy). Another stock in the health care sector worth considering includes Cubist, which carries the same rank as Tetraphase.
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TETRAPHASE PHAR (TTPH): Free Stock Analysis Report
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