Dermira (DERM): Investment Thesis Playing Out, Reiterate Outperform - Needham

Needham & Company analyst, Serge Belanger, recently met with Dermira (NASDAQ: DERM) executives to discuss recent positive clinical results around DRM01 (acne) and DRM04 (hyperhidrosis) and the next steps forward for each program. He came away with a better appreciation for the positive ph 2b DRM01 results in terms of its consistent efficacy, which was on par with prior ph 2a results, and its overall clean safety profile. Given that DRM01 has shown it can offer isotretinoin-like efficacy in targeting sebum production with a well tolerated safety profile, the product is well-positioned to play a front-line role in acne treatment. DRM04 recently completed its pivotal efficacy studies where it demonstrated highly statistically significant and clinically meaningful improvements across its two primary endpoints.

NDA filing for DRM04 is planned for 2H17 once the open-label safety study (ARRIDO) has completed. Detailed results of the ph 3 pivotal DRM04 trials will be presented at medical meetings this fall. Now that key clinical data events for DRM01 and DRM04 are in the rearview mirror, he expects DERM to ramp up business development activities in an effort to supplement its pipeline with additional therapeutic dermatology candidates.

No change to Buy rating or price target of $46.00

For an analyst ratings summary and ratings history on Dermira click here. For more ratings news on Dermira click here.

Shares of Dermira closed at $28.82 yesterday.

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