Shares of Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX) jumped nearly 27% Wednesday following the news of FDA approval of opioid-induced constipation (OIC)-fighting drug Oral Relister, invented to help treat chronic pain due to advanced illness. In light of this announcement, Brean Capital analyst Jonathan Aschoff reiterates a Buy with a price target of $14.00, which implies a premium of 125% from where the stock is currently trading.

Aschoff understands oral Relistor faces direct competition from Movantik, the first once daily oral OIC-treating mu-opioid receptor antagonist already available to the public. Yet, the analyst firmly believes that “oral Relistor will see significant uptake because it can be used on a PRN schedule due to its more rapid, predictable onset of action. Predictability is important for constipation drugs.” After its anticipated United States launch, Aschoff believes patients will like the updated counterpart more than existing non-oral version called Relistor SQ. The analyst also predicts a royalties increase, including a $50 million payment next quarter for milestone approval.

As Aschoff looks ahead with optimistic outlook into Progenic’s future with Relistor, the analyst also welcomes the catalyst of upcoming top-line data following the projected success of the trial for Azedra (FDA-declared Breakthrough Therapy Drug) developed to treat malignant pheochromocytoma and paraganlioma; data to be released at the earliest in December 2016, and by the latest in March 2017. Azedra could be significant, as it exists as the first therapy of its kind to treat these illnesses.

As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. According to TipRanks, Jonathan Aschoff is ranked #3,959 out of 4,057 analysts, with a 32% success rate and an average loss of 12.7% per recommendation.

TipRanks shows Progenics Pharmaceuticals to be a Moderate Buy. Based on 2 analysts polled in the last 3 months, both rate PGNX as a Buy. There is a consensus price target of $11.50, marking an 84% upside from where the stock is currently trading.