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Why resTORbio Stock Is Seeing Solid Growth Today


Jul. 25 2018, Published 2:26 p.m. ET

Stock performance

Today, resTORbio (TORC) is trading at $13.36, which represents ~48.28% growth compared to yesterday. On July 24, resTORbio stock closed at $9.01, which represents ~19% growth from its 52-week low of $7.54 on April 10. TORC hit its 52-week high of $21.09 on February 26.

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Reason for the stock rise

Today, resTORbio announced positive results from its Phase 2b trial of RTB101 to evaluate the safety and efficacy of the drug in older individuals who are at high risk of morbidity and mortality due to respiratory tract infections.

In the trial’s 16-week therapy period, RTB101, an inhibitor of the mammalian target of rapamycin complex 1 (or TORC1), showed a statistically significant and clinically beneficial decrease in the percentage of patients with one or more laboratory-confirmed respiratory tract infections compared to the placebo.

resTORbio also noted that all doses were well tolerated. The trial was conducted in two parts. Phase 1 included patients in the Southern Hemisphere who were dosed with RTB101 5 mg (milligrams) and RTB101 10 mg once daily. Phase 2 included patients in the Northern Hemisphere who were dosed once daily with RTB101 5 mg, RTB101 10 mg, and RTB101 10 mg plus everolimus 0.1 mg. To know more about the clinical trial results, please refer to the resTORbio press release.

resTORbio is a biopharmaceutical company in the clinical stage and is focused on the development of therapies targeting various biological pathways that regulate aging, including TORC1. Currently, the selective targeting of TORC1 is its leading program.

The success in the clinical trial will help resTORbio file regulatory filings for approval of the commercialization of the drug around the world.

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Analyst recommendations

Of the four analysts tracking resTORbio in July, three of them have recommended a “strong buy,” and one has recommended a “hold.” On July 24, resTORbio had a consensus 12-month target price of $28.75, which represents a ~121.84% return on investment over the next 12 months.

Peer ratings

Of the five analysts tracking Solid Biosciences (SLDB) in July, ~60% of them have recommended a “buy” for the stock. Of the three analysts tracking Arcus Biosciences (RCUS), two of them have recommended a “strong buy,” and one has recommended a “hold.” Of the 19 analysts tracking Merck & Co. (MRK), ~74% of them have recommended a “buy.”

On July 24, Solid Biosciences, Arcus Biosciences, and Merck & Co. had consensus 12-month target prices of $48.75, $23, and $69.44, respectively, which represents ~28.14%, ~100.35%, and ~9.09% returns on investment, respectively, over the next 12 months.


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