Shares of mological drug maker OHR Pharmaceutical Inc (NASDAQ:OHRP) are skyrocketing nearly 47% today, after Cerebral Investing published an article on Seeking Alpha explaining the merits of its long position. Despite your view of the company, an open-minded investor will see that Cerebral Investing made many solid points in its argument.
Key points made in the article hinge on the high probability of success for the company’s Phase 3 clinical trial in wet AMD, the ‘explosive’ market opportunity, and the stock’s valuation, which offers a uniquely compelling risk/reward profile for investors. On top of this, the author believes these factors make the company an acquisition candidate.
Cerebral Investing stated, “OHRP is significantly mispriced at current levels given the probability of the success of its Phase 3 clinical trial, the results of which will be released in early 2018. Unlike failed anti-PDGF combination therapies, Squalamine has an intracellular mechanism of action, targets multiple angiogenic growth factors, has a topical delivery route and provides a sustained suppressive therapy from daily administration. Assuming the analysis above is accurate, OHRP’s stock should rise multiple-fold over the coming 1-2 months in anticipation of the impending MAKO data readout early in 2018. The insiders of OHRP have been putting their money where their mouths are by consistently buying the stock, and the anti-VEGF oligopoly players would be smart to consider acquiring OHRP as soon as possible. There is clearly a large market for Squalamine assuming its efficacy in improving visual acuity is confirmed, and the lack of competition will make this a uniquely valuable asset in the red-hot wet AMD treatment market.”
On the ratings front, OHR Pharmaceutical has been the subject of a number of recent research reports. In a report issued on November 27, Roth Capital analyst Yasmeen Rahimi initiated coverage with a Buy rating on OHRP and a price target of $7.00, which represents a potential upside of 696% from where the stock is currently trading. On August 16, H.C. Wainwright’s Corey Davis reiterated a Buy rating on the stock and has a price target of $10.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Yasmeen Rahimi and Corey Davis have a yearly average return of 0.3% and 2.7% respectively. Rahimi has a success rate of 38% and is ranked #3320 out of 4738 analysts, while Davis has a success rate of 42% and is ranked #1792.
Ohr Pharmaceutical is a pharmaceutical company, which focuses on the development of novel pharmaceuticals for the treatment of ocular diseases. The company was founded by Irach B. Taraporewala in 2008 and is headquartered in New York, NY.