Earlier this week, DURECT Corporation (NASDAQ:DRRX) announced an exclusive U.S. license and collaboration agreement with Sandoz AG, a division of Novartis to develop and commercialize Posimir, an extended-release, locally-acting, non-opioid painkiller.
In reaction, H.C. Wainwright analyst Ed Arce reiterates a Buy rating and a $3.00 price target on DRRX.
Arce noted, “In our view, this deal with a large Pharma partner with strong economics not only eliminates investor uncertainty of whether sufficient financial resources exist to support the full development of DUR-928 but it also provides critical Big Pharma validation of Posimir.”
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ed Arce has a yearly average return of 27.2% and a 48% success rate. Arce has a 9.5% average return when recommending DRRX, and is ranked #131 out of 4560 analysts.