Brean Capital analyst Jonathan Aschoff came out today with a research note on Intellipharmaceutics (NASDAQ:IPCI), as the company announced a licensing agreement with Teva (NYSE:TEVA) for an undisclosed extended-release oral drug candidate. Under the agreement, Teva obtained the exclusive license to market an extended-release oral drug candidate pending ANDA approval in the US.
The analyst rates IPCI a Buy with an $8 price target, which implies an upside of 270% from current levels.
Aschoff observed, “Teva is not disclosing the specific drug candidate at this point due to competitive reasons, and we note that Intellipharmaceutics currently has 7 ANDAs under FDA review, with some of those ANDAs already substantially past the 35 months median review time for ANDAs. The FDA approved Intellipharmaceutics’ Toronto manufacturing facility in October 2014, about 3 years after the first approval in July 2011. As manufacturing facility approval is an integral part of drug approvals, we believe Intellipharmaceutics is well positioned for at least one ANDA approval this year. Currently, Intellipharmaceutics is partnered with Par to market generic Focalin XR in the US, but with more downstream economics from the Teva deal than from the Par deal, the Teva deal, in our view, will be more lucrative for Intellipharmaceutics.”
Intellipharmaceutics International Inc., a pharmaceutical company, researches, develops, and manufactures novel and generic controlled and targeted release oral solid dosage drugs in Canada.