Citi opens ‘negative catalyst watch’ on PTC Therapeutics into EU decision

Citi opened a “negative 30-day catalyst watch” on shares of PTC Therapeutics ahead of the Committee for Medicinal Products for Human Use’s final opinion, likely on January 25, regarding Translarna’s conditional marketing authorization in the European Union. This catalyst represents a material downside risk for shares, the analyst tells investors in a research note. The firm believes affirmation of the CHMP’s negative opinion is the most probable outcome, resulting in the drug’s withdrawal from the EU market. The hares could decline over 25% in such a scenario, contends Citi. It keeps a Sell rating on PTC with a $17 price target.