Expectations are high for a new anticoagulant spun out of Duke University, and so is analyst optimism, leading to a stock surge for Regado BioSciences early Monday.
Newly public Regado (Nasdaq: RGDO) is investigating an anticoagulant that Ritu Baral, Cannacord Genuity analyst, says could be superior to what’s already on the market.
Baral expects the compound’s imminent Phase 3 trial to show top-line success in 2014 and estimates peak worldwide sales of $2.5 billion.
Regado is based in Basking Ridge, N.J., but spun out of Duke University and maintains an operation in Durham. The company, which raised $43 million via IPO in August, raised $51 million last year from investors such as Durham-based Aurora Funds.
Baral initiated coverage this week with a “buy” rating and a $14 target price, but Cannacord isn’t the only firm with high expectations.
Cowen initiated its coverage this week with an “outperform” rating.
Regado’s stock responded by rising more than 30 percent early Monday to $6.04.