32. (CTIC) Pacritinib Approval, Downgrade To A Sell Rating

Apr. 11, 2022, BiotechValley Insights

Summary

• FDA approved Pacritinib on Feb 28th, and the stock has appreciated more than 150%. However, the risk-reward has deteriorated significantly since our last article.
• The company does not have any more short-term catalysts, and considering that Pacritinib is an encumbered asset (deal with DRI), we do not think M&A is a likely scenario.
• We are downgrading to a sell as we expect selling pressure to abound from fund managers trying to short the launch.
• Commercialization remains to be uncertain, and dilution may be a potential risk.