NEW YORK (TheStreet) -- Shares of Array BioPharma (ARRY) - Get Array Technologies Report were higher 6.17% to $3.44 in late afternoon trading on Monday as Jefferies increased its price target on the Boulder, CO-based biopharmaceutical company to $7 from $6 this morning.
The firm reiterated its "buy" rating on Array, noting that additional, successful Phase II data on its ARRY-797 drug could be "potentially meaningful" for the stock. The data could also indicate that a Phase III trial is warranted.
Array's ARRY-797 drug is an oral inhibitor of p38 mitogen activated protein kinase, a protein that results in structural changes in cardiac tissue and is activated by a rare, degenerative cardiovascular disease, the company said in a statement. The disease can eventually cause heart failure.
Experts are looking for Array's Phase II trial to meet its primary endpoint of 6MWD, Jefferies noted.
The firm added that the ARRY-797 drug could potentially reduce patients five-year mortality rate to approximately 10% from about 60% when the disease goes untreated.
The drug also lowers hospitalizations to a rate of once every three years, compared to four to five times every year in severe cases, Jefferies said.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Array BioPharma as a Sell with a ratings score of D. This is driven by some concerns, which it believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: