MLV Reiterates Buy On pSivida As All Eyes On Iluvien US Launch
In a research report issued today, MLV analyst Arlinda Lee reiterated a Buy rating on pSivida Corp (NASDAQ:PSDV) with a $6.50 price target, following the company’s first-quarter fiscal 2015 results, posting EPS of $0.67, beating MLV’s estimate of a loss of ($0.12).
Lee wrote, “Partner ALIM reiterated last night on its earnings call that it is on track to bring Iluvien (for diabetic macular edema) to the US market in calendar 1Q15. ALIM has communicated to US retinal specialists and payors that it intends to price Iluvien at $8,000-$9,000 per dose (which lasts three years). At the sub-$10,000 price point, ALIM believes that most payors will reimburse. ALIM estimates that 45% of U.S. patients will be Medicare, 45% commercial insurance, and 10% medicaid/DoD. ALIM previously cautioned that while Iluvien will be a Medicare Part B drug that will be reimbursed by CMS, it will not have a J-code in 2015 which may contribute to reimbursement drag. ALIM is building a 32 person sales force to market to ~2,500 retinal specialists in the U.S. ALIM estimates that the associated incremental operating expense for calendar year 2015 will be ~$30 MM – a portion of which may flow through PSDV’s profit sharing arrangement with ALIM.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Arlinda Lee has a total average return of -8.8% and a 50.0% success rate. Lee is ranked #2682 out of 3364 analysts.