This article was originally published on TipRanks.com
Penny stock electroCore, Inc. (NASDAQ: ECOR) jumped 64% to close at $0.88 on Wednesday.
The price action followed the Breakthrough Designation granted by the U.S. Food and Drug Administration (FDA) for the commercial-stage bioelectronic medicine company’s gammaCore non-invasive Vagus Nerve Stimulation (nVNS) device.
The device is designed to treat patients with posttraumatic stress disorder (PTSD). PTSD is a widespread disabling disorder and has limited authorized treatment options. According to the U.S. Department of Veterans Affairs National Center for PTSD, around 15 million adults in the U.S. are affected by PTSD annually.
The regulator’s decision was supported by the research conducted by the Emory-Georgia Tech team. The research, developed on a strong mechanistic rationale and animal studies, demonstrated that nVNS blocks sympathetic and inflammatory responses to memories of traumatic events in patients with PTSD. Additionally, it succeeded in modulating brain responses to traumatic memory and reduced symptoms of PTSD by 31% compared to a sham stimulation.
Senior Vice President of Neurology at electroCore, Eric Liebler, said, “We appreciate the thorough and timely review by the FDA of our Breakthrough Device Request for gammaCore for the treatment of PTSD. The ability of nVNS to target several of the underlying causes of PTSD such as autonomic dysfunction, stress and inflammation, safely and effectively supports its potential as a breakthrough treatment for PTSD.”
Wall Street’s Take
On December 16, H.C. Wainwright analyst Swayampakula Ramakanth maintained a Buy rating and a price target of $3 on the stock.
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average electroCore price target of $3 implies 240.91% upside potential. Shares have lost 48.8% over the past year.
According to the new TipRanks Risk Factors tool, electroCore stock is at risk mainly from three factors: Tech and Innovation, Finance and Corporate, and Legal & Regulatory, which contribute 24%, 22%, and 18%, respectively, to the total 99 risks identified for the stock.
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