JMP analyst Donald Ellis is encouraged on Endo International plc – Ordinary Shares (NASDAQ:ENDP) after the biotech firm’s pipeline drug Xiaflex, used to treat Dupuytren’s contracture in adults, demonstrated statistically significant improvement in cellulite patients in a positive Phase 2B trial data read-out.
On back of the “highly positive data” demonstrating statistical significance on both primary and secondary endpoints compared to the placebo arm coupled with expectations for a “larger and successful Phase 3 study,” the analyst remains bullish on the firm. As such, Ellis reiterates an Outperform rating on shares of ENDP with a $34 price target, which represents a 97% increase from where the stock is currently trading.
Patients tolerated Xiaflex well, especially considering most adverse events (AEs) ranged between mild to moderate and were primarily limited to the local injection site. Ellis adds, “We note 92% of AEs were mild to moderate and the most common AEs included injection site bruising (~75%) and injection site pain (~59%).”
The analyst opines, “Endo will work with the FDA to advance Xiaflex into a Phase 3 trial in cellulite. Cellulite is not incorporated into our numbers, but we are encouraged for a positive future Phase 3 study.”
“Cellulite is not included in our estimates, but represents upside. Cellulite affects 85-98% of all post-pubertal women of all races and ethnicities, thus represents a large market opportunity,” Ellis concludes.
According to TipRanks, four-star analyst Donald Ellis is ranked #452 out of 4,227 analysts. Ellis has a 75% success rate and garners 24.8% in his annual returns. When recommending ENDP, Ellis gains 9.1% in average profits on the stock.
TipRanks analytics exhibit ENDP as a Buy. Out of 9 analysts polled by TipRanks, 4 are bullish on Endo stock and 5 remain sidelined. With a return potential of nearly 34%, the stock’s consensus target price stands at $22.83.