Egalet Corp (NASDAQ:EGLT) shares were sent on a close to 13% rise today after the firm announced this morning that its pipeline drug Egalet-002, abuse-deterrent, extended-release oxycodone product, in a Category 3, intranasal human abuse potential (HAP) study, demonstrated statistically significant less Drug Liking than immediate-release oxycodone.
While Cantor analyst Chiara Russo joins the celebratory conversation circling the firm whose drug bested OxyContin, she believes all the more “impressive” is the drug’s demonstration of statistically significant less Ease of Snorting coupled with Pleasantness of Snorting when it went toe-to-toe against long-acting OxyContin in an exploratory arm and won.
Therefore, the analyst reiterates an Overweight rating on EGLT with a $21 price target, which represents a 166% increase from where the shares last closed.
Additionally, the analyst notes, “We reiterate our opinion that Egalet’s proprietary Guardian Technology, utilized in both Arymo (pending FDA approval) and Egalet-002, is best-inclass for abuse-deterrence given the “aggressive” methods required for any sort of manipulation.”
“Though EGLT already has two products currently on the market, Sprix Nasal Spray and Oxaydo, an immediate-release oxycodone formulation that discourages intranasal abuse, the real value in our opinion comes from their proprietary Guardian abuse-deterrent technology, which we believe to be best-in-class. EGLT’s first proprietary product Arymo, an abuse-deterrent, extended-release morphine formulation, was recently delayed due to the FDA missing the October PDUFA date. Within the space that Arymo would play, a small percentage of market share would equate to meaningful revenue for the company. Egalet-002 is the second product in development currently in Phase 3 with data anticipated in 1H17,” Chiara surmises.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, one-star analyst Chiara Russo is ranked #3,556 out of 4,279 analysts. Russo has a 45% success rate and loses 2.2% in her yearly returns. When suggesting EGLT, Russo faces a loss of 2.7% in average profits on the stock.
TipRanks analytics exhibit EGLT as a Buy. Out of 2 analysts polled by TipRanks in the last 3 months, 1 rates a Buy on EGLT while 1 maintains a Hold. The 12-month average price target stands at $21.00, marking a 166% upside from where the stock is currently trading.
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