TESARO Inc (NASDAQ: TSRO) fell approximately 10% on Jan 2nd, 2017 after the company received negative reviews from two separate stock analysts. The stock recovered over 0.9% on Jan 3rd, 2018 (as of 11:16AM EST; Source: Google finance). Piper Jaffray lowered its price target from $117 per share to $80, taking into account that extremely high expectations for its Zeluja cancer treatment might need to come down in order to reflect the correct valuation in the market. Moreover, the analysts at Cowen has revised their price target down from $125 to $80 per share, due to the similar reasons including the potential for a competing drug in the space to pose a threat to Zeluja’s revenue growth later in 2018 or early next year. Both analysts has kept their ratings unchanged, but at neutral and market perform, respectively, neither see a lot of potential in Tesaro’s prospects.
Meanwhile, TSRO has announced that ZEJULA (niraparib), an oral, once-daily poly (ADP-ribose) polymerase (PARP) inhibitor, is now available in Germany. ZEJULA is also currently available for patients in the United Kingdom (UK) who have private insurance. The introductions of ZEJULA in Germany and the UK are significant milestones for TSRO and the company is working to make the medicines available in the 17 European countries where TSRO have a direct presence. Europe has one of the highest incidences of ovarian cancer in the world with approximately 45,000 women diagnosed each year.
Moreover, TSRO has announced that VARUBI (rolapitant) IV, to be now available in the United States. The U.S. Food and Drug Administration (FDA) has approved VARUBI injectable emulsion on October 25th, 2017, to be used in combination with other antiemetic agents in adults for the prevention of delayed nausea and vomiting associated with initial and repeat courses of emetogenic cancer chemotherapy, including, but not limited to, highly emetogenic chemotherapy.
Additionally, TSRO has secured $500 million non-dilutive term loan financing from BIOPHARMA CREDIT PLC and BIOPHARMA CREDIT INVESTMENTS IV SUB LP, investment funds managed by Pharmakon Advisors, LP. The first $300 million was expected to be drawn at an initial closing in early December 2017, and an additional tranche of up to $200 million is available for draw at TSRO’s option until December 20th, 2018. The loans will mature in December 2024.
TSRO stock has fallen 43.77% in the last one year (source: Google Finance).