Healthcare Sell-Side Analysts Head to Sidelines on CoLucid Pharmaceuticals Inc (CLCD) and Alcobra Ltd (ADHD)


CoLucid Pharmaceuticals Inc

CoLucid Pharmaceuticals Inc (NASDAQ:CLCD) shares are on the run today after the migraine-medicine maker announced a definitive merger agreement with Eli Lilly. Under the terms of the agreement, Eli Lilly will acquire all shares of CoLucid for a purchase price of $46.50 per share or approximately $960 million. This all-cash transaction will enhance Lilly’s existing portfolio in pain management for migraine, while adding a potential near-term launch to its late-stage pipeline.

In reaction, Piper Jaffray analyst Charles Duncan downgraded shares of CoLucid from Overweight to Neutral, as the stock almost reached his price target of $49.00. Moreover, the analyst reduced the price target to 46.50 to reflect the price tag on the pending merger.

Duncan wrote, “We see this announcement as resulting from CoLucid’s clean design and execution of its Phase III program for oral lasmiditan, and expect the second Phase III SPARTAN trial to read out on schedule in 3Q17. On the GLADIATOR open-label study, we believe that retention rates remain at >70% and that Lilly has likely performed thorough diligence on ongoing safety, efficacy, and compliance in the program. Therefore we see relatively low risk to new information arising in the near-term which threatens completion of this transaction. Overall, the bid confirms our long-held thesis around clinical value of a new acute migraine treatment that provides advantages over standard-of-care triptans on CV safety as well as efficacy for some patients. At this time, we are reducing our rating for CLCD to Neutral.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Charles Duncan has a yearly average return of -2.5% and a 41% success rate. Duncan has a 30.6% average return when recommending CLCD, and is ranked #3783 out of 4350 analysts.

Out of the 5 analysts polled by TipRanks, 3 rate CoLucid stock a Buy, while 2 rate the stock a Hold. With a downside potential of 4%, the stock’s consensus target price stands at $44.33.

Alcobra Ltd

Roth Capital analyst Michael Higgins downgraded shares of Alcobra Ltd (NASDAQ:ADHD) from Buy to Neutral with a price target of $1.00, after the company announced top-line results from its Phase 3 MEASURE study showing that investigational product Metadoxine Extended Release (MDX) missed the primary endpoint in adult ADHD.

Higgins commented, “While management did not provide any specific details on the results of the MEASURE trial, it noted that the results were conclusive, that there was little room for interpretation, which led to its decision to curtail any further investment into MDX in ADHD patients. While we are interested in learning if there were any signals among those that completed the trial versus those that had not completed the study, given the potential impact on MDX’s outlook in FXS, mgt responded on this morning’s conference call that there didn’t appear to be an efficacy signal among those that completed the study. In our view, given the overlap in the etiology in between ADHD and FXS, the partial MEASURE results reduce our optimism of MDX’s efficacy in FXS.,

According to TipRanks, analyst Michael Higgins has a yearly average return of -15.2% and a 32% success rate. Higgins has a -64.0% average return when recommending ADHD, and is ranked #4218 out of 4350 analysts.

Out of the 8 analysts polled by TipRanks, 7 rate Alcobra stock a Hold, while 1 rates the stock a Sell. With a return potential of 60%, the stock’s consensus target price stands at $1.59.

 

    Stay Ahead of Everyone Else

    Get The Latest Stock News Alerts