Canaccord Lifts Price Target for Aerie Pharmaceuticals Inc (AERI) Following Successful Phase 3 Mercury Trial

Aerie Pharmaceuticals Inc’s (NASDAQ:AERI) pipeline drug Roclatan, a novel once-daily, quadruple-action eye drop being tested for its ability to lower intraocular pressure (IOP) in patients with glaucoma or ocular hypertension, just successfully completed its Phase 3 Mercury 1 trial, exhibiting a statistically significant reduction in IOP, beating out both Rhopressa and latanoprost at every time point.

In light of a Phase 3 success that Canaccord analyst John Newman deems both “highly positive” and “impressive,” the analyst reiterates a Buy rating on AERI, while lifting the price target from $44 to $50, which represents a nearly 137% upside from where the shares last closed.

Newman asserts, “We believe that these low IOP measurements show the high potency for Roclatan and could confer a key additional advantage vs latanoprost going forward.”

Furthermore, “We believe the consistency for Rhopressa in MERCURY-1 bodes well for the current NDA under review at FDA.”

“Based on the success thus far of Roclatan in its first Phase 3 trial, we are raising our price target to $50 and maintain our BUY rating, due to lower perceived risk for Roclatan in this indication,” Newman concludes.

In the future, the analyst anticipates further data around severity and duration in regards to pain detail.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst John Newman is ranked #4,027 out of 4,151 analysts. Newman has a 32% success rate and faces a loss of 13.0% in his yearly returns. However, when recommending AERI, Newman earns 14.0% in average profits on the stock.

TipRanks analytics demonstrate AERI as a Strong Buy. 100% of analysts polled in the last 3 months rate a Buy on AERI. The consensus price target stands at $44.80, marking a 112% upside from where the stock is currently trading.screen-shot-09-15-16-at-01-39-pm

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts