For Egalet, Clinical Delays Outweigh Solid Q4 And Arymo Launch

Cantor Fitzgerald cut its price target on Egalet Corp EGLT shares by $2 to $13 on the delay of clinical progress for Egalet-002, which is now expected to file an NDA in 2019 versus previous guidance of mid-2017.

However, Chiara Russo maintained an Overweight rating on the stock, given the imminent launch of Arymo, and growth in Sprix and Oxaydo.

Oxaydo grew quarter-over-quarter as it competes in the large immediate-release oxycodone market. Egalet has submitted data to the FDA that could allow for additional abuse-deterrent language around the IV route of abuse.

Can Arymo Offset Potental Sales Loss Of Sprix?

In addition, the analyst sees additional growth for Sprix in 2017 with a dedicated, targeted 32-rep sales force. That said, he sees the revenue potential as shortlived as patent settlement on Sprix ends in March 2018.

“Though there is currently only one ANDA filer which could lead to less price erosion if launched, we look to Arymo to make up revenue shortfall,” Russo added.

Russo suggests Egalet could revamp the sales force, including an exclusive Sprix sales team and inducement grants for better sales results.

At last check, shares of Egalet rose 1.28 percent to $4.73.

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