In a report released today, Leland Gershell from Oppenheimer maintained a Buy rating on Avenue Therapeutics Inc (ATXI), with a price target of $10. The company’s shares closed yesterday at $4.99.
Gershell said:
“A staged acquisition by InvaGen (Cipla subsidiary) announced Tuesday morning will enable ATXI to take IV tramadol through its remaining clinical development and FDA review for approval without need for additional capital, as well as setting an exit valuation that represents a ~235% premium to Monday’s close. Second pivotal trial in post-op pain to start by YE, with top-line data in mid-’19. Approval in 4Q20 would trigger a merger absent any labeling or related surprises (e.g. REMS), with the remaining shares to be purchased at ~$13.92. Holders will also get CVRs based on commercial performance. We reaffirm our Outperform rating and raise our 12- to 18- month price target to $10 (from $8).”
According to TipRanks.com, Gershell is a 1-star analyst with an average return of -8.3% and a 21.7% success rate. Gershell covers the Healthcare sector, focusing on stocks such as Evofem Biosciences Inc, AzurRx BioPharma Inc, and Urogen Pharma Ltd.
Currently, the analyst consensus on Avenue Therapeutics Inc is a Moderate Buy with an average price target of $10.
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Based on Avenue Therapeutics Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $4.66 million. In comparison, last year the company had a GAAP net loss of $2.95 million.
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Avenue Therapeutics, Inc. operates as a pharmaceutical company. It engages in acquiring, licensing, developing, and commercializing products for use in the intensive care hospital setting. The company was founded on February 9, 2015 and is headquartered in New York, NY.
