OHR Pharmaceutical Inc (NASDAQ:OHRP) is confronting the aftermath of Fovista’s pivotal two Phase 3 failures that both missed the primary endpoint in neovascular age-related macular degeneration (wet AMD), which is a marked downfall from the firm’s encouraging Phase 2 topline data.
Nonetheless, H.C. Wainwright analyst Corey Davis maintains confidence in the biotech firm’s pipeline on a larger scope in face of its recent setback, reiterating a Buy rating on shares of OHRP with a $10 price target, which represents a just under 441% increase from current levels.
Davis explains, “Despite the failure of another high profile anti-PDGF inhibitor for combination therapy in treating wet AMD (the first was Regeneron’s (REGN; not rated) rinucumab in P2 on Sept. 30, and yesterday was Ophthotech’s (OPHT; not rated) Fovista in P3), we don’t think there should be a completely negative read-through for Ohr’s squalamine (enrolling Phase 3 since June with data expected by the end of 2017).”
First, the analyst underscores that Ohr underwent a greater level of variability in transitioning between Phase 2 and Phase 3 than OPHT.
Second, the analyst highlights three key mechanistic differentiators: an intracellular mechanism compared to extracellular for Fovista, a downstream level inhibition of a central pathway compared to at an upstream level, and furthermore, Davis draws the distinction between an eye drop instead of the form of an injection.
Overall, “While the market may not have the stomach for another potential AMD combination drug, we think that’s already reflected in the current $1.85 stock price. Our near-term view is driven more by our belief that potential partners will be interested in the only active combination therapy in P3,” Davis contends.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, Corey Davis is ranked #3,904 out of 4,269 analysts. Davis has a 35% success rate and loses 4.3% in his annual returns. When recommending OHRP, Davis forfeits 43.0% in average profits on the stock.
Additionally, Jason Wittes of Aegis Capital rates a Hold rating on OHRP without listing a price target, Jonathan Aschoff of Brean Capital rates a Hold without suggesting a price target, Joseph Pantginis of Roth Capital rates a Buy with a $13 price target, and Gbola Amusa of Charan Capital rates a Hold with a $3 price target. You can learn how to set up your own top-notch biotech portfolio here.