Stifel starts UroGen Pharma at buy; PT $70

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Stifel initiated coverage of UroGen Pharma (NASDAQ:URGN) with a “buy” rating and $70 price target. The stock closed at $43.90 on Sept. 12.

“We think UroGen offers investors an opportunity to own a company with a late-stage asset that is largely de-risked with an attractive (orphan), albeit, niche commercial opportunity along with an emerging pipeline and validated platform,” writes analyst Derek Archila.

He said UroGen's lead program, MitoGel, is a potential “game changing” treatment for upper tract urothelial carcinoma (UTUC) where the current standard of care remains surgery.

Positive interim data from its open-label Phase 3 study for MitoGel in UTUC presented at the American Urological Association meeting in May 2018, has “largely de-risked the program and we think full top-line results in the fourth quarter of 2018 should further validate MitoGel's efficacy but more importantly its durability,” he added.

“We think investors are under appreciating the opportunity for MitoGel in UTUC and the favorable reimbursement position it may have at launch and give little credit to UroGen's second program, VesiGel,” for the treatment of low grade non-invasive bladder cancer, Mr. Archila said. “We think shares have room to run and would be buyers,” he recommended.

Stephen Kilmer