This Specialty Pharmaceutical Company Is Starting Its First Marketing Campaign

• BioPharmX Corp BPMX shares have lost almost 60 percent year-to-date, and have fallen from above $4 in June to below $2 in August.
• Sterne Agee’s Gregory P. Chodaczek initiated coverage of the company with a Buy rating and a price target of $3.50.
• Given the capital raised for increased awareness of the company’s first commercially available product, Chodaczek believes that BioPharmX would witness meaningful growth through repeat customers.

BioPharmX is a specialty pharmaceutical company focused on developing drug delivery technologies to develop and commercialize novel prescription and OTC products that address the women's health and dermatology markets.

Analyst Gregory Chodaczek said the company is in the early stages of marketing its first commercially available product, VI2OLET iodine, for the treatment of Fribrocystic Breast Condition. This condition is estimated to affect about 38 million women in the US. BioPharmX has raised about $10 million to increase awareness of this product and drive revenue adoption.

“As part of the marketing campaign, physicians have begun sampling 60 tablet packages to patients who may benefit from the product. We estimate that BPMX will see meaningful growth through repeat (monthly) customers once the 60-day sampling period is up,” Chodaczek wrote.

VI2OLET iodine, which was launched in December 2014, is now available in roughly 4,400 outlets. The analysts expects the product to be introduced to other retailers in early FY16.

In the report Sterne Agee noted, “BioPharmX has a product candidate in development, BPX01 (topical minocycline) for the treatment of acne…The company hopes to gain a competitive advantage in the acne market by eliminating side effects associated with existing products. BioPharmX is targeting Q1 2016 to initiate a 12 week/12- patient Phase 2 clinical trial.”