Rally on! Here’s Why Gemphire Therapeutics (GEMP) Stock Has Another 222% to Go
It’s a very rewarding trading day for investors in Gemphire Therapeutics (NASDAQ:GEMP) with shares up over 90%, making the stock Wall Street’s bull of the day.
Why the excitement? The drug maker announced that it achieved the primary endpoint (reduction of TGs by gemcabene) in its Phase 2b INDIGO-1 trial in severe hypertriglyceridemia (HTG) patients. Impressively, ~67% of the 600 mg patients achieved serum TG level <500 mg/dL, a clinically meaningful result. The once daily tablet has demonstrated promising evidence of safety, efficacy and tolerability in more than 1,100 subjects thus far.
In reaction, Canaccord analyst John Newman reiterated a Buy rating on GEMP stock, with a price target of $31, which represents a potential upside of 222% from where the stock is currently trading.
Newman commented, “We maintain our BUY rating and $31 PT based on our continued expectation for gemcabene development given the positive INDIGO-1 data. As expected, gemcabene appeared well-tolerated as monotherapy or as add-on to statins, with active arm patients experiencing mild to moderate AEs at a lower frequency than the placebo arm. No SAEs or withdrawals were reported in the active arm. One patient did report alanine transaminase (ALT) level > 3x normal upper limit in the 600 mg gemcabene arm, but the patient already showed elevated ALT at baseline (~2-2.5x of normal upper limit), and the spike was spontaneously resolved while remaining on treatment.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a yearly average return of 17.4% and a 46% success rate. Newman is ranked #232 out of 4827 analysts.
Wall Street agrees with Newman that this biotech firm is one to watch, as TipRanks analytics exhibit GEMP as a Strong Buy. Out of 5 analysts polled in the last 12 months, all 5 are bullish on Gemphire stock. With a return potential of nearly 170%, the stock’s consensus target price stands at $25.80.