Brean Capital Maintains Bullish Stance On Repros, $41 PT
In a research report issued today, Brean Capital analyst Jonathan Aschoff reiterated a Buy rating on Repros Therapeutics (NASDAQ:RPRX) with a price target of $41.00.
Aschoff wrote, “The FDA AdComm panelists voted 20-1 in support of a more restrictive label that limits the use of TRT drugs to only patients with classic hypogonadism (low testosterone due to testicular or hypothalamic/ pituitary disease), where clear clinical benefit is coupled with benign safety. The recommended restrictive label is meant to exclude patients with age-related hypogonadism, for which the panel is unclear about whether hypogonadal-like signs and symptoms are due to low testosterone or normal aging. Currently, TRT drugs are approved for a vague indication of primary and secondary hypogonadism regardless of etiology, which seemingly has encouraged physicians to prescribe TRT drugs based on hypogonadal-like symptoms and without even adequately measuring patient testosterone levels. We note that Androxal has been evaluated in overweight men aged 18-60, indicating that Repros is not targeting age-related hypogonadism and therefore does not deserve to be as negatively impacted by yesterday’s panel vote. Moreover, we expect a potential Androxal label for obesity-related hypogonadism, which is a much larger market than classic hypogonadism. Dr. Frederick Wu, who is a principal investigator in the European Male Aging Study, and the sole person speaking during the brief time allotted for Repros to present, differentiated obesityrelated hypogonadism from age-related hypogonadism and suggested that obesity-related hypogonadism can be addressed by life-style management and drugs that raise endogenous testosterone, such as the differentiated drug Androxal, for example. We believe Androxal has sufficient efficacy and will soon have sufficient one-year safety data for a potential obesity-related hypogonadism indication.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Aschoff has a total average return of 15.3% and a 56.5% success rate. Aschoff has a -34.2% average return when recommending RPRX, and is ranked #199 out of 3286 analysts.