Roth Capital Positive on Curis (CRIS) Following Q3 Results from Roche/Erivedge

Roth Capital affirms Curis (Nasdaq: CRIS) with a Buy rating and $10 price target following quarterly results from partner Roche (OTCBB: RHHBY). Roche posted Erivedge revenue of $35 million in Q3, versus $36.6 million reported in the preceding quarter.

Analyst Joseph Pantginis commented, While we had expected to see additional Erivedge quarter-over-quarter growth for the 3Q14, we are encouraged that sales remained strong following significant sales growth from 1Q14 to 2Q14, with particularly strong sales growth in the U.S. during that period. We believe Roche remains committed to the drug, both in terms of expanding territory approvals and also based on the broad clinical development program.

Roche is also developing Erivedge for non-oncology indications, specifically idiopathic pulmonary fibrosis (IPF). The IND for IPF was filed in June 2014 and triggered a $3 million milestone payment to CRIS. The planned Phase II study is scheduled to enroll 130 patients and is expected to be initiated later this year. We believe that there is room for further revenue growth on the Erivedge front and are looking forward for outcome updates from the clinical development front. Beyond Erivedge, we believe that CRIS is progressing well towards data catalysts. Recall that the company recently opened the expansion cohort in the Phase I study of CUDC-907 in DLBCL and MM. The FDA also accepted CRIS's second IND for '907, which will allow the company to initiate a study of the drug in solid tumors, which CRIS expects to begin enrolling in 4Q14. This study will include hormone receptor positive breast cancers. A Phase I study of CUDC-427 is also ongoing and is expected to have expansion cohorts in ovarian and fallopian tube cancers. CRIS also expects to initiate combo studies of CUDC-427 with SOC chemotherapy in late 2014 or early 2015.

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

Curis closed at $1.37 yesterday.

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