Canaccord Boosts Price Target for Lipocine Inc (LPCN); Sees Lead Oral Testosterone Product as Key Catalyst

Canaccord analyst John Newman provides positive perspective on Lipocine Inc (NASDAQ:LPCN), encouraged by the biotech firm’s lead oral testosterone product, LPCN-1111, a drug which uses Lip’ral technology to enhance solubility and improve systemic absorption, as well as its second oral testosterone drug LPCN-1021, currently being evaluated as a replacement therapy in males for conditions associated with either a deficiency or absence of endogenous testosterone.

As such, the analyst reiterates a Buy rating on LPCN. On back of higher peak revenues projected for the firm’s oral testosterone product by the year 2024, the analyst lifts the price target from $6 to $15, which represents just under a 169% increase from where the shares last closed.

By 2024, Newman anticipates the firm’s oral testosterone produce will hit $235 million in U.S. peak sales.

The analyst asserts, “Importantly, we believe better safety and convenience for an oral testosterone vs currently marketed gels and injectables will result in rapid market share gains. We remind investors that adherence may also improve for an oral vs gel or injectable formulation, resulting in higher annual revenue per patient.”

Lipocine recently indicated positive Phase 2b data for its once-daily oral testosterone product LPCN-1111, as well as identified a safe and efficacious does for Phase 3. Newman notes, “Importantly, a favorable dose-response relationship was observed, and no drug-related SAEs were reported. We await an update after communication with FDA, which may occur in 4Q16.”

Regarding LPCN-1021, the analyst sees a “key catalyst” and waits to hear an update on FDA feedback on the heels of the Complete Response letter for LPCN-1021, a determining factor as to whether or not the firm can resubmit a revised dosing schedule to address the agency’s underlying concerns.

“Importantly, FDA was concerned about the viability of the dosing scheme used in Phase 3, triggering the Complete Response letter. However, Lipocine may be able to submit a reanalysis of Phase 3 data showing results when a simpler dosing scheme was used,” Newman concludes.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst john Newman is ranked $4,067 out of 4,184 analysts. Newman has a 35% success rate and faces a loss of 11.5% in his yearly returns. When recommending LPCN, Newman loses 0.1% in average profits on the stock.

TipRanks analytics demonstrate LPCN as a Buy. Based on two analysts polled in the last 3 months, 100% rate a Buy on LPCN. The consensus price target stands at $15.50, marking a nearly 172% upside from where the stock is currently trading.screen-shot-10-11-16-at-05-38-pm

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