Oppenheimer Thinks Valeritas’ Stock is Going to Recover


In a report released today, Steven Lichtman from Oppenheimer maintained a Buy rating on Valeritas (VLRX), with a price target of $2. The company’s shares opened today at $0.31, close to its 52-week low of $0.28.

Lichtman noted:

“Valeritas’ 1Q19 sales of $6.4M (+5% y/y) slightly exceeded both our $6.2M estimate and prior guidance. US targeted/new account prescription remained a core focus growing 30%/28% y/y as non-targeted/new account prescription trends declined 8%/14%. GM was about in-line with our estimate at 47.6% (flat y/y). FY19 sales guidance was slightly raised on the low end to $31-34M (+17-29%), from $30-34M on the U.S. performance. Management expects its improved formulary position, expanded US salesforce (+50%), and fully integrated V-Go Cares program to accelerate sales growth in 2H19E to ~30%. Gross margin expansion remains on target to exit the year at 52-54%.”

According to TipRanks.com, Lichtman has currently no stars on a ranking scale of 0-5 stars, with an average return of -2.6% and a 45.6% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Helius Medical Technologies, Tandem Diabetes Care Inc, and Boston Scientific Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Valeritas with a $1 average price target.

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Based on Valeritas’ latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $11.86 million. In comparison, last year the company had a GAAP net loss of $11.57 million.

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Valeritas Holdings, Inc. is a commercial-stage medical technology company, focuses on the development and commercialization of technologies to treat patients with diabetes. It offers products under the V-Go brand. V-Go Disposable Insulin Delivery Device, is used by patients with type 2 diabetes to maintain target blood glucose goals.

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