Leerink: Time To Buy Nabriva Therapeutics' 'Unique Differentiation'

• Nabriva Therapeutics AG – ADR NBRV shares have plunged 24 percent since September 21, while hovering close to the $10 mark so far in October.
• Leerink’s Paul Matteis initiating coverage of the company with an Outperform rating and a price target of $19.
• Lefamulin sets Nabriva apart from other companies, since this lead product is a novel anti-infective with a new mechanism of action, Matteis mentioned.

Nabriva is a biotechnology company developing lead product Lefamulin as an intravenous and oral therapy for Community Acquired Bacterial Pneumonia, or CABP.

Analyst Paul Matteis said that Nabriva is “unique among its late stage antibiotic peers” like Cempra Inc CEMP [Rated: Market Perform], Paratek Pharmaceuticals Inc PRTK [Rated: Outperform] and Tetraphase Pharmaceuticals Inc TTPH.

Matteis explained that while there were several other companies focusing on improved, next-gen agents from well-established antibiotic classes, “Lefamulin is a "pleuromutilin," a novel anti-infective with a new mechanism of action.”

Although its Lefamulin's differentiation poses some additional risk to Phase III, Nabriva offers “potentially greater reward upon success,” the analyst wrote.

In the report Leerink noted, “MEDACorp KOLs are very enthusiastic about Lefamulin's clinical potential, as a novel mechanism-of-action implies little to no risk of pre-existing resistance and just as important, effectiveness against problematic, resistant bacterial strains.”

Moreover, since Lefamulin is a member of a new class, its reimbursement could be easier, in view of the lack of generic comps.

Although Lefamulin has not yet generated any data in CABP patients, Matteis believes that Nabriva’s two Phase IIIs have 60 percent chance of succeeding. “Other indications for Lefamulin, as well as NBRV's early stage pleuromutilin discovery platform, represent upside to our current valuation,” the Leerink report added.