Adamis Pharmaceuticals Corp (NASDAQ:ADMP) shares were shooting up almost 9% yesterday following the news that the drug maker had submitted its prior approval supplement (PAS) with the FDA for the pediatric version of epinephrine auto-injector Symjepi. This version of Symjepi is designed to treat patients between 33 and 65 pounds, different from the original intended to treat patients weighing 66 pounds or greater.
As the firm makes waves in the healthcare arena on back of buzz for its cost-friendly rival to Mylan’s EpiPen, bulls like FBR analyst Andrew D’silva are left eager on Adamis’ prospective approval ahead.
In reaction to the PAS submission, the analyst reiterates a Buy rating on ADMP stock with a price target of $9.50, which implies a 150% increase from where the stock is currently trading. (To watch D’silva’s track record, click here)
Overall, “We view the risk associated with an approval to be meaningfully less than the filings made for the original version of Symjepi, […] as the pediatric version is essentially a lower dose of the original […] We believe the market for the pediatric version of Symjepi is meaningfully smaller than the original version and likely only accounts for ~20% of the market, but we do expect that getting the offering approved will only strengthen the value of the Symjepi brand to a strategic partner as it can be the go-to solution to a broader swath of physicians and patients. Meanwhile, from a commercialization standpoint, management continues to highlight the company is in confidential discussions with several potential partners. We believe industry dynamics favorably position the company to establish a noteworthy marketing partnership, due to the void in the market for EpiPen alternatives, which should result in meaningful high-margin revenue growth through upfront fees and royalties,” D’silva concludes, confident on Adamis’ standing in the biotech arena.
TipRanks has garnered positive early initial word on this biotech player, with all 3 analysts polled in the last 12 months rating a Buy on Adamis stock. The 12-month average price target among these bulls stands at $9.83, indicating a nearly 159% upside from where the shares last closed.