In a research report released Wednesday, Brean Capital analyst Jonathan Aschoff reiterated a Buy rating on shares of Heron Therapeutics Inc (NASDAQ:HRTX), with a price target of $55, after the company announced the FDA’s approval of Sustol, the first and only approved 5-HT3 agent with an extended-release effect and 5 days of CINV prevention in MEC and most HEC regimens.
Aschoff wrote, “The label did not include all of HEC (includes 93% of HEC), because the FDA deemed that there were not enough patients on platinum-based HEC regimens in the Phase 3 MAGIC trial, even though there was a strong response rate to Sustol in these cisplatin-treated patients. This may cut the target market by about 7%, but we note that oncology doctors often prescribe drugs off-label, as we noticed with Aloxi, which has been used off-label for delayed HEC, and the net cost recovery financial incentive should make Sustol highly commercially attractive.”
“Near term, we look forward to the 4Q16 Sustol launch and data from a placebo-controlled, dose-finding Phase 2 trial of HTX-011 in abdominoplasty patients (n=100). We also await further details of the data just released, particularly hernia data from HTX-011 without meloxicam and the extent to which those results could potentially suffice in place of a multifactorial Phase 3 trial,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Aschoff has a yearly average return of -10.6% and a 36% success rate. Aschoff has a 12.4% average return when recommending HRTX, and is ranked #4001 out of 4110 analysts.
As of this writing, all the 8 analysts polled by TipRanks rate Heron stock a Buy. With a return potential of 104%, the stock’s consensus target price stands at $42.71.
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