Savara Inc (NASDAQ:SVRA) shares are rising 8% after an interim data presentation for Aironite in pulmonary hypertension (PH) left investors excited with the inhaled sodium nitrite drug’s prospects. Canaccord Dewey Steadman believes the firm’s product candidate designed to treat heart failure patients with preserved ejection fraction (HFpEF) shows real potential in the indication of pulmonary hypertension (PH).
The key win for Savara is that Aironite not only showed it was “well-tolerated” among the Phase II trial patients, but also its safety profile looks promising and has Steadman bullish on the future of Savara. Meanwhile, the drug achieved statistical significance in boosts in pulmonary arterial compliance for the PH-HFpEF “cohort.”
In reaction, the analyst reiterates a Buy rating on shares of SVRA with an $18 price target, which implies a potential upside of just under 202% increase from current levels. (To watch Steadman’s track record click here.)
Steadman underscores, “With the total number of enrolled patients reported in this trial at this point up to 41, we’re encouraged by the consistency of hemodynamic benefit seen thus far but are still waiting for more data to determine the profile of the product. If the clinical program of Aironite in heart is successful, we expect Savara will likely outlicense the product’s CV indications given the product will be outside of Savara’s traditional call points. We maintain our BUY rating and $18 PT that is based on the potential for Molgradex and AeroVanc, with Aironite remaining a free call option pending additional positive clinical data and a potential outlicense transaction.”
Additionally, new trial read-outs might soon be underway further bolstering the compelling value of Aironite in HFpEF. Moving ahead, “Multiple catalysts can drive shareholder value, in our opinion,” the analyst concludes, pointing to: “1) AeroVanc Ph3 init 3Q/17E; 2) Aironite INDIE top-line results estimated in 1H/18; 3) Molgradex Ph2/3 top line results 4Q/18E; and 4) potential NDAs for Molgradex and AeroVanc in 2019/20.”