Cantor Moves To The Sideline On Apricus Shares; Cuts PT To $1.50
In a research report issued today, Cantor analyst Irina Rivkind maintained a Hold rating on Apricus Biosciences (NASDAQ:APRI) and reduces her price target to $1.50 (from $3.00), following the news that the company has licensed its U.S. development and commercialization rights for Fispemifene from Forendo Pharma for the treatment of secondary hypogonadism (low testosterone).
Koffler observed, “If the entire clinical program is successful, we would expect this drug to reach the market in 2020, and therefore, the upfront payment and anticipated research costs are dilutive to APRI for now. Management indicated it has sufficient cash through 2015 but may in tandem monetize OUS rights to RayVa (for Raynaud’s Syndrome) and generate additional upfront payments from Vitaros LatAm & APAC licensing rights. The company may also sell equity to Aspire Capital. We have updated our model with additional anticipated research and commercial expense, interest expense, COGS, and share dilution, as well as 50% risk-adjusted revenues for Fispemifene beginning in 2020. Our DCF valuation has subsequently decreased to $1.50.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Irina Rivkind Koffler has a total average return of 13.2% and a 61.6% success rate. Rivkind Koffler has a -30.3% average return when recommending APRI, and is ranked #187 out of 3349 analysts.