In a research report issued Thuesday, Brean Capital analyst Jonathan Aschoff reiterated a Buy rating on shares of Heron Therapeutics Inc (NASDAQ:HRTX), with a price target of $55, after the drug maker announced a positive update regarding the FDA’s review of Heron’s new drug application (NDA) for Sustol Injection (extended release) to treat acute and delayed chemotherapy-induced nausea and vomiting.
Aschoff commented, “We expect the near-term approval of Sustol and commercial launch shortly thereafter. The sales and marketing teams have already been hired and are more than ready for launch. We believe that the clinically proven advantages of Sustol versus ondansetron, will allow Sustol to price at enough of a premium to Aloxi’s ASP such that Heron can still discount from launch to 4Q18 (when we expect Aloxi to go generic).”
“We also believe that the delay of the reimbursement J-code is a non-issue because it does not stop Heron from selling the drug, especially given that Sustol’s attractive net cost recovery in the community setting against other competitors should grant community oncologists enough incentive to do a small amount of extra paperwork to get reimbursed. We look forward to a derisked FDA approval of Sustol near term and to HTX-011 Phase 2 data at the end of this quarter,” the analyst continued.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, all the 6 analysts who cover Heron Therapeutics stock (in the past 3 months), rate it a Buy. With a return potential of 102%, the stock’s consensus target price stands at $44.50.
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