Maxim Slashes Price Target For IntelliPharmaCeutics Intl Inc (USA) (IPCI); Here’s Why


In a research report issued Thursday, Maxim analyst Jason Kolbert reiterated a Buy rating on shares of IntelliPharmaCeutics Intl Inc (USA) (NASDAQ:IPCI), while slashing the price target to $2.00 (from $6.00). (To watch Kolbert’s track record, click here)

The reason? The drug maker was smashed at the FDA advisory panel yesterday with a 22 to 1 vote finding that the Company’s NDA for Rexista abuse-deterrent oxycodone hydrochloride extended release tablets should not be approved at this time. The committees also voted 19 to 4 that the company has not demonstrated that Rexista has properties that can be expected to deter abuse by the intravenous route of administration, and 23 to 0 that there are not sufficient data for Rexista to support inclusion of language regarding abuse-deterrent properties in the product label for the intravenous route of administration.

Kolbert noted, “One panel member commented that the dye could be a fashion statement for kids at a rave. Has he ever been to a rave? Do kids at rave’s use opioids? For us, the panel just didn’t make sense. The results of the vote suggest a lot is going on here and there may be tones that the government just does not want to approve more opioids in a period where it has become a national epidemic.”

“If we remove Rexista from our model, fair value drops to $2, from $6. For the moment that is exactly what we are doing. As such, any incremental positive progress on Rexista represents upside to our forecast,” the analyst continued.

Chart

 

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts