Cantor Lifts Aerie's Price Target To $50 Following 'Rock Solid Phase 3 Roclatan Results'

Shares of Aerie Pharmaceuticals Inc AERI soared higher by more than 50 percent Thursday after the company reported Phase 3 data involving Roclatan which met its primary efficacy endpoint.

In a report, Dr. Elemer Piros of Cantor Fitzgerald suggested that the data was "impeccable" and "rock solid." Shares remain Buy rated with a price target raised to $50 from a previous $44.

Related Link: Aerie Rips 60% After Positive Roclatan Phase 3 Topline Efficacy Results

"When comparing the Phase 3 results with an earlier, smaller trial, the combination drug worked even better than its ingredients," wrote Piros. "Intraocular pressure (IOP) was reduced, on average to 15-16mmHg at all nine time points measured over a 90-day period. The lowering was 1-3mmHg higher than observed with the components, latanoprost and Rhopressa.

"The difference, as disclosed in a slide deck presented, but not in the press release, was statistically significant with a p value of <0.0001 - very robust. The responder analysis revealed that nearly half of Roclatan-treated patients (46%) experienced a very significant >=35% reduction in IOP. Furthermore, one-third achieved IOP levels at or below 14mmHg, while nearly two-thirds (61%) had pressure that was at or below 16mmHg at day 90."

Piros added that Aerie submitted the NDA for Rhopressa, which would be indicated for patients with a baseline IOP of less than or equal to 25mmHg. As such, the second Phase 3 trial readout for Roclatan is expected to be released in the first half of 2017 with a potential NDA submission by the bottom half of next year.

The risk associated with the company's programs have now "decreased meaningfully."

Shares traded recently at $32.80, up 55 percent.