This Analyst Sees More Upside for VistaGen Therapeutics (VTGN) Stock; Here’s Why
Investors love biotech stocks for the lottery ticket-like returns they can offer if a company strikes medical gold or wins the regulator’s blessing. Case in point: VistaGen Therapeutics (VTGN), whose shares are soaring nearly 35% in Wednesday’s trading session.
The cause of all the enthusiastic commotion? VistaGen announced that the FDA has granted Fast Track designation for AV-101 as a non-opioid, non-sedating treatment for neuropathic pain. This means that the FDA will work more closely with the drugmaker in the approval process and could pave the way for a quicker approval.
AV-101 is an oral NMDA antagonist that binds to Glycine B site and does not completely block the receptor. AV-101 already has Fast Track Designation for major depressive disorder (MDD).
Can the stock keep flying high? Maxim analyst Caroline Palomeque believes so. The analyst reiterates a Buy rating on VTGN with a $6.00 price target, which implies an upside of 191% from current levels. (To watch Palomeque’s track record, click here)
Palomeque commented, “We view this news as an incremental positive for VistaGen and as management executing its plan to develop AV-101 as a platform therapeutic within the CNS space. We note that the ongoing Phase 2 ELEVATE trial of AV-101 in MDD is expected to read out data in 2019. Neuropathic pain (NP) affects approximately 33 million people in the United States. It is characterized by a steady burning or “pins and needles” or “electric shock” sensation that results in abnormal neuronal function after trauma to the nerve, viral infections, certain medications, or metabolic insults. The Fast-track designation for AV-101 in NP underlines the FDA focus on supporting the development of non-opioid alternatives for pain.”
When it comes to Wall Street’s bet, the odds are on this biotech player, with TipRanks analytics showcasing VTGN as a Strong Buy. Out of 3 analysts polled in the last 3 months, all 3 are bullish on VistaGen stock. With a return potential of nearly 434%, the stock’s consensus target price stands at $11.33. (See VTGN’s price targets and analyst ratings on TipRanks)