Canaccord Reiterates Hold on AcelRx Pharmaceuticals Inc After FDA Setback
Canaccord Genuity’s healthcare analyst John Newman weighed in today with his views on AcelRx Pharmaceuticals Inc (NASDAQ:ACRX), after the company reported that the FDA is requesting additional clinical studies for its lead drug candidate, pain medication Zalviso prior to drug submission.
The analyst maintained a Hold rating on the stock with a $6.00 price target, which represents a potential upside of 16% from where the stock is currently trading.
Newman noted, “We believe there was a breakdown in the communication process, where either the agency did not provide clear guidance to the company on acceptable studies or AcelRx misread the FDA’s requests. Regardless, AcelRx will plan to meet with the FDA as soon as possible to discuss options going forward. Additionally, we remind investors that the FDA has not seen the results yet for the positive HF and bench test study results, which may lead the agency to demand a less stringent and time-consuming trial, although this is purely speculation.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a total average return of 21.6% and a 66.2% success rate. Newman has a -40.1% average return when recommending ACRX, and is ranked #162 out of 3508 analysts.