Brean Capital Boosts Price Target on Recro Pharma Inc Following Investor Meetings

Brean Capital analyst Jonathan Aschoff came out with a favorable report on Recro Pharma Inc (NASDAQ:REPH) following several investor meetings with the company’s management. Aschoff reiterated a Buy rating on the stock and boosted the price target from $26 to $28. Shares of REPH closed yesterday at $11.22, up $0.40, or 3.79%.

Aschoff observed, “Fundamentally, we view the company as being in the best shape it has ever been, with Phase 3 ready IV meloxicam and Phase 2 dexmedetomidine (dex) data coming, by our estimation, in July. Our strong expectation for positive Phase 2 dex results in post-bunionectomy pain stems from the interim analysis of unblinded data resulting in the recommendation to limit enrollment to 170 patients rather than the originally anticipated 200-250.”

The analyst also commented, “We further note that trials randomized 1:1 are statistically more powerful than trials of the same size with uneven randomization. We view a positive dex result as a major near-term investment catalyst, one that sets the company up to potentially be able to offer patients an opioid free post-operative pain relief regimen of intravenous meloxicam followed by intranasal dex.”

Furthermore, “We are not concerned about the recent Phase 3 failure of clonidine in diabetic neuropathy as it relates to the clinical prospects for dex, as dex is a more selective alpha-2 agonist and bunionectomy is a different indication, one in which dex has already passed an arguably telling interim hurdle.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Aschoff has a total average return of 10.5% and a 53.2% success rate. Aschoff has a 178.3% average return when recommending REPH, and is ranked #273 out of 3632 analysts.

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