RBC Capital analyst Adnan Butt weighed in with some commentary on Aerie Pharmaceuticals Inc (NASDAQ:AERI) following an FDA agreement that the company may change the primary endpoint range of its second Phase 3 registration trial of Rhopressa, a once-daily eye drop that lowers intraocular pressure. The analyst maintained an Outperform rating on the stock, and raised the price target from $27 to $31, which represents a potential upside of 134% from where the stock is currently trading.

Butt observed, “Five things that matter are: 1) Better alignment of Phase III endpoints with what worked in Rocket 1, 2) Two shots at success for Rhopressa, which could see shares appreciate, 3) Upcoming Roclatan Phase III start, which could be the most efficacious drug for glaucoma, 4) New mechanism, and 5) Blockbuster market potential. We are raising our price target to reflect these developments.”

Furthermore, “AERI sought and secured a change in the primary endpoint and statistical plan to evaluate patients with baseline IOP >20 mmHg but <25 mmHg as the primary endpoint (>20 mmHg but <27 mmHg is now a secondary endpoint). This is likely the best chance at success Rhopressa has going forward based on what the unsuccessful Phase III Rocket 1 study showed.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Adnan Butt has a total average return of -1.7% and a 48.0% success rate. Butt has a -44.7% average return when recommending AERI, and is ranked #3011 out of 3629 analysts.