Here’s Why AcelRx Pharmaceuticals (ACRX) Stock Skyrocketed Today


On a day like today, when the entire stock market is under pressure, you must have done something right to see your stock jump more than 10%. And AcelRx (ACRX) definitely did something right, at least if you ask David Buck, a healthcare analyst of B.Riley FBR.

In research note issued today, Buck initiated coverage on ACRX with a Buy rating and price target of $9.00, which represents a potential upside of 117% from where the stock is currently trading. (To watch Buck’s track record, click here)

Buck explains his bullish conviction: “Our positive thesis on ACRX is based on expected U.S. approval for DSUVIA, an acute pain treatment formulated as a sublingual strong opioid tablet (sufentanil), by year-end, with a November 3 PDUFA date. We also expect the resubmission of a Zalviso NDA for moderate pain by year-end. In particular, DSUVIA should target an estimated 18M annual emergency department visits with an IV insertion just for pain management and an outpatient surgery market of 11M acute moderate to severe pain patients. Using ~75% odds of success, we estimate potential peak DSUVIA sales of $370M, or ~$493M unadjusted for risk. For Zalviso in the U.S. market, we expect this drugdevice combination to address an estimated 10M in-patient individuals with stays of more than 24 hours as an alternative to patient-controlled analgesia IV solutions. We forecast that this drug could achieve peak sales in excess of $200M, and our model currently embeds ~50% odds of approval.”

Net-net, TipRanks reveals the drug maker as one drawing bullish attention on Wall Street. Out of 6 analysts polled in the last 3 months, 5 rate AcelRx stock a Buy versus only 1 who rates it a Hold. These analysts believe (on average) that ACRX has big upside potential of over 80% from the current share price. This would take the stock from $4.18 all the way to $7.60. (See ACRX’s price targets and analyst ratings on TipRanks)