Edge Therapeutics Initiated Outperform At Credit Suisse

• Shares of Edge Therapeutics Inc EDGE have appreciated 3 percent year to date, although the share price has been very volatile through 2015.
• Vamil Divan of Credit Suisse has initiated coverage of the company with an Outperform rating and price target $29.
• Divan views the company as a leader in treatment development for life-threatening indications, with its initial focus is meeting the large unmet need for aneurysmal subarachnoid hemorrhages.

Analyst Vamil Divan elaborated that the company’s lead product, EG-1962, “has shown encouraging efficacy and safety data in phase 2, with phase 3 scheduled to start in early 2016 and end by 2018, setting the stage for a potential commercial launch in 2019.”

The product has already obtained Orphan Drug Designation, and Divan believes that the drug has the potential to receive either Fast Track or Breakthrough Status from the FDA, which would drive near term upside.

In addition, Edge Therapeutics’ Precisa approach has the potential to be leveraged for use in other acute hospital indications. The IND for EG-1964 in chronic subdural hematoma is expected to be filed in late 2015 or early 2016.

However, Divan also warned that the company was unlikely to generate revenues before 2019.