In a report released yesterday, Esther Rajavelu from Oppenheimer maintained a Buy rating on Kala Pharmaceuticals Inc (KALA), with a price target of $11. The company’s shares closed yesterday at $6.94.
Rajavelu observed:
“KALA reported 1Q results and provided a business update. We note the Inveltys launch is progressing ahead of our expectations with 1Q revenues of ~$1M vs our estimate of $0.6M. Management indicated 41% of commercial lives and 10% of Medicare lives are under unrestricted access, and Medicare Part D contract negotiations are ongoing with broader coverage decisions likely in early 2020. We expect Inveltys uptake to continue to be strong throughout the year with revenues reaching ~$7M for 2019E (higher than our prior estimate of $4M). We continue to view KALA as a strong launch story, and while we note the likelihood of an approval delay for KPI-121, we are cautiously optimistic that results from the follow-on P3 trial could support approval ultimately.”
According to TipRanks.com, Rajavelu is a 2-star analyst with an average return of 1.0% and a 48.5% success rate. Rajavelu covers the Healthcare sector, focusing on stocks such as Teva Pharmaceutical Industries Limited, Biohaven Pharmaceutical Holding Co Ltd, and Rocket Pharmaceuticals Inc.
Currently, the analyst consensus on Kala Pharmaceuticals Inc is a Strong Buy with an average price target of $23.
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The company has a one-year high of $17.39 and a one-year low of $4.03. Currently, Kala Pharmaceuticals Inc has an average volume of 211.4K.
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Kala Pharmaceuticals, Inc. is a biopharmaceutical company, focused on the development and commercialization of therapeutics using proprietary nanoparticle-based Mucus Penetrating Particles, or MPP, technology, with an initial focus on the treatment of eye diseases.
