Repros Therapeutics: FDA Panel Concerns Overblown In Our View, Says Brean Capital


In a research report issued today, Brean Capital analyst Jonathan Aschoff reiterated a Buy rating on Repros Therapeutics (NASDAQ:RPRX) with a $41.00 price target, following yesterday’s release of the the FDA briefing documents for the upcoming September 17th AdComm on RPRX’s testosterone replacement therapy.

Aschoff wrote, “We believe that the briefing documents are overwhelmingly directed at TRT in particular, and only tangentially related to Androxal, and we support that view in part by noting that Repros has only been allotted a mere 3.5 minutes to speak during the one and a half day panel meeting. The four questions raised by the FDA were centered around two themes 1) the appropriate patient population for which TRT should be indicated, and 2) the potential CV risk associated with TRT. Given that Androxal has a different mechanism of action and had different inclusion/exclusion criteria in its trials compared to TRT drugs, we believe that Androxal will be less impacted by the panel than TRT, should CV risk and/or patient population restriction be emphasized, and we therefore view Repros as substantially oversold in response to negative commentary from midday yesterday. We look forward to the one-year safety data and final Phase 3 results for Androxal in October, which should assuage concerns for CV risk, in our view.”

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 22.5% and a 67.2% success rate. Aschoff has a -28.1% average return when recommending RPRX, and is ranked #96 out of 3255 analysts.

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