Jefferies Supports Premium Pricing on Dificid by Optimer Pharmacy (OPTR)

Earlier today, analysts from Jefferies published a company note on the launch of a new drug Dificid by Optimer Pharmaceuticals, Inc. OPTR. The analysts maintain the Buy rating and a price target of $17. Following the FDA approval on May 27th, OPTR will price Dificid at $2,800 for a 10-day course treatment Clostridium difficile-associated diarrhea (CDAD), and launch the drug earlier expected in six weeks. The drug claims a superior sustained clinical response than the competitor Vancocin on the label, but the pricing will be significantly higher than Vancocin. Jefferies views that the annual sales of $250 million of Dificid easily achievable, which would likely suggest upside to the projections. Analysts also support the co-promotion partner Cubist, employing 180 sales reps to make up 280 sales reps in total. This reduces the risk with a first drug launch by the small biotech company, OPTR, benefiting the initial phase of the launch cycle. Analysts maintain the estimates of $8 million in US sales, and $46 million in 2012, slightly under consensus. The risks with OPTR include: delay/failure of fidaxomicin approval and slower than expected fidaxomicin sales. Upcoming events that could positively affect OPTR are the EU approval of Dificid in 4Q11, and potential EU launch of Dificid by Astellas in 1H12. At the time of posting, shares of OPTR were trading at $14.51, 11.79% up from previous close. Jefferies Supports Premium Pricing on Dificid by Optimer Pharmacy (OPTR)