AcelRx Pharmaceuticals Inc’s (NASDAQ:ACRX) just announced positive top-line results from its third, final Phase 3 trial of pipeline drug ARX-04 designed to treat moderate-to-severe acute pain, indicating that the drug hit primary and secondary efficacy endpoints. AcelRx shares reacted to the news, rising nearly 12% to $3.67.

On back of ACRX achieving a “remarkable safety profile especially among high-risk patients” with ARX-04 in its Phase 3 study, H.C. Wainwright analyst Ed Arce reiterates a Buy rating on ACRX with a price target of $7.00, which represents a 92% increase from where the shares last closed.

Arce opined, “We view these top-line results […] in terms of both safety and efficacy–as robust, especially given the high-risk patient population. With a strongly positive Phase 3 ARX-04 program now complete, and an NDA filing expected later this year, we believe the stage has been set for continued meaningful improvements in investor sentiment (and appreciation) in ACRX shares from now through likely FDA approval of ARX-04 by year end 2017.”

The analyst anticipates that the NDA filing by the end of this year will act as the next near-term driver. As such, “We believe achieving these near-term milestones is beginning to significantly improve investor expectations and sentiment on ACRX, thereby creating the potential for meaningful share appreciation,” Arce concludes.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, four-star analyst Ed Arce is ranked #1,028 out of 4,151 analysts. Arce has a 34% success rate and earns 3.7% in his annual returns. When recommending ACRX, Arce faces a loss of 22.3% in average profits on the stock.

TipRanks analytics demonstrate ACRX as a Strong Buy. Based on 4 analysts polled in the last 3 months, 3 rate a Buy on ACRX, while 1 maintains a Hold. The consensus price target stands at $9.13, marking a nearly 151% upside from where the stock is currently trading.