Alcobra Pharma: For Risk-Tolerant Investors, We Recommend Buying Shares, Says Roth Capital
In a research report published this morning, Roth Capital analyst Debjit Chattopadhyay reiterated a Buy rating on Alcobra Pharma (NASDAQ:ADHD) with a $40 price target ahead of the company’s report of the first of its two phase 3 studies in adults with ADHD.
Chattopadhyay wrote, “The enrollment criteria, study design/duration, and primary/secondary endpoints closely approximate the successful phase 2 study. Based on MDX’s impact on cognitive/executive function, we anticipate a robust readout especially in patients with ADHD-I. For risk-tolerant investors, we recommend buying ahead of the data.” The analyst added, “In the phase 3 study, 39% of the patients are ADHD-I, which drives the study power to 90%. Of the 300 patients, 215 were enrolled from 18 sites in the U.S and 85 were enrolled at two sites in Israel. Note that ~50% of the patients in the study are women. In the ADHD-I subtype, MDX is expected to deliver an effect size of 0.6 (recall that in the phase 2b study the effect size was 0.9).”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Debjit Chattopadhyay has a total average return of 5.6% and a 47.1% success rate. Chattopadhyay has a 4.7% average return when recommending ADHD, and is ranked #1410 out of 3250 analysts.