Analyst Andrew Berens of Leerink Partners reiterated a Hold rating on Deciphera Pharmaceuticals (DCPH – Research Report), retaining the price target of $25.60.
Andrew Berens has given his Hold rating due to a combination of factors affecting Deciphera Pharmaceuticals. One primary reason is the anticipated acquisition of Deciphera by Ono Pharmaceutical Co., Ltd., which is set to be an all-cash transaction valued at $2.4 billion, or $25.60 per share. This acquisition is expected to conclude in the third quarter of 2024. While the deal provides a clear exit strategy for shareholders, it also caps the stock’s upside potential at the agreed acquisition price, limiting opportunities for significant stock price appreciation prior to the deal’s completion.
Furthermore, Berens notes a possible concern with Deciphera’s revenue, particularly from its product Qinlock, which reported sales of $42.55 million. These figures not only fell short of the consensus estimate by approximately 6% but also showed a decline from the previous quarter’s sales by about 9%. While there has been no observed decline in Qinlock’s growth for the first quarter, Berens suggests the potential for this to indicate a seasonal sales trend. Despite this, the company is set to present additional data from a Phase 3 trial, which could influence regulatory submissions, yet the current financials and the impending acquisition play pivotal roles in the Hold rating.
According to TipRanks, Berens is an analyst with an average return of -0.8% and a 39.38% success rate. Berens covers the Healthcare sector, focusing on stocks such as AstraZeneca, Viracta Therapeutics, and Blueprint Medicines.
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Deciphera Pharmaceuticals (DCPH) Company Description:
Deciphera Pharmaceuticals, Inc. operates as a biotechnology company which develops and manufactures kinase inhibitor treatments for cancer by cutting off the ability of tumor cells to thrive and spread. The company designs a drug candidate, DCC-2618, to inhibit the full spectrum of mutant or amplified KIT and PDGFRa kinases that drive cancers such as gastrointestinal stromal tumors (GIST), advanced systemic mastocytosis (ASM), gliomas, and other solid tumors. It also develops two other clinical-stage drug candidates, DCC-3014 and rebastinib, as immuno-oncology kinase, inhibitors targeting the kinases CSF1R, and TIE2 kinas. The company was founded by Peter A. Petillo and Daniel L. Flynn in November 2003 and is headquartered in Waltham, MA.
