Alcobra Ltd (NASDAQ:ADHD) is a mover and shaker out on the Street today, with investors sparking the stock on an almost 40% upturn. The reason? Alcobra’s wholly-owned subsidiary, Arcturus, announced that it has entered into a research collaboration and worldwide license agreement with Janssen Pharmaceuticals – a subsidiary of Johnson & Johnson.
According to the agreement, the two companies will work together to develop and commercialize nucleic acid-based drug products for the treatment of Hepatitis B, using Arcturus’ UNA Oligomer chemistry and LUNAR™ lipid-mediated delivery platform. The agreement also includes an option to expand into other infectious and respiratory diseases. The deal was facilitated by the Johnson & Johnson Innovation center, in California.
Under the agreement, Arcturus will receive an upfront cash payment, R&D support, and pre-clinical, development, and sales milestone payments, as well as royalty payments on any future licensed product sales. Janssen will assume responsibility for development costs and all commercialization costs associated with the program.
Arcturus President and CEO commented, “This new collaboration signifies an expanded relationship between Arcturus and Janssen […] Arcturus’ expertise and intellectual property in the field of RNA medicines is complemented by Janssen’s broad capabilities in clinical development, regulatory affairs, and marketing. Together we aim to bring new treatments to patients who are suffering from Hepatitis B and potentially other infectious diseases.”
On the ratings front, Alcobra stock has been the subject of a number of recent research reports. In a report issued on October 9, WBB analyst Stephen Brozak assigned a Buy rating on ADHD, with a price target of $2.00, which represents a potential upside of 16% from where the stock is currently trading. On September 29, Roth Capital’s Michael Higgins downgraded the stock to Hold and has a price target of $1.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Stephen Brozak and Michael Higgins have a yearly average return of 18.2% and a loss of 13% respectively. Brozak has a success rate of 53% and is ranked #713 out of 4695 analysts, while Higgins has a success rate of 33% and is ranked #4623.
Alcobra engages in the research, development, and market of pharmaceutical productsfor the treatment of central nervous system disorders and cognitive dysfunctions. Its portfolio includes Metadoxine Extended Release to treat Attention Deficit Hyperactivity Disorder and Fragile X Syndrome.