Intellipharmaceutics Is 'Not Just A Generic Drug Story,' Brean Capital Says

In a report published Monday, Brean Capital analyst Jonathan Aschoff maintained a Buy rating on

, with a price target of $8. In the report, Brean Capital noted, "Intellipharmaceutics reported revenue of $1.5 million and EPS of $(0.05) for its FY4Q14 (ended November), in line with our estimates…We note that Intellipharmaceutics has 7 ANDAs under FDA review, with some of them already substantially past the 35-month median review time for ANDAs and thus approvals should be relatively near term. With its recent manufacturing facility approval, the company is well positioned for new approvals," Aschoff wrote. "In FY4Q14 Intellipharmaceutics reported positive results from six Phase 1 trials with Regabatin XR, its non-generic pregabalin extended-release formulation. Regabatin XR 82.5mg BID was shown comparable in bioavailability to Lyrica (branded immediate-release pregabalin) 50mg TID for indications such as fibromyalgia, whereas Regabatin XR 165mg QD was shown comparable in bioavailability to Lyrica 75mg BID for other indications including neuropathic pain associated with diabetic peripheral neuropathy. These results suggest that Regabatin XR may reduce the number of doses while maintaining oral bioavailability, thereby improving patient compliance," the analyst added. "Intellipharmaceutics plans to file for an IND under the NDA 505(b)(2) regulatory pathway with the FDA, with the goal to move Regabatin XR into Phase 3 and commercialize it with a potential partner in the US following the Dec. 30, 2018 patent expiry for Lyrica," Aschoff wrote.