Chardan Initiates Eyegate Pharma At Buy, Sets $6 Target
- Eyegate Pharmaceuticals Inc (NASDAQ: EYEG) shares are down 30 percent in the last three months, and have traded below $3 for most of December.
- Chardan Capital’s Keay Nakae initiated coverage of the company with a Buy rating and a price target of $6.
- Eyegate Pharma’s lead compound is promising and results from the Phase1b/2a clinical trial could be the next key catalyst, Nakae stated.
Analyst Keay Nakae believes that Eyegate Pharma’s lead compound, EGP-437, is “a promising approach” for the treatment of eye diseases. The company has completed a Phase 3 clinical trial for this compound for the treatment of non-infectious anterior uveitis.
Eyegate Pharma is currently preparing for EGP-437 to enter a larger Phase 3 confirmatory clinical study, which could commence shortly, Nakae said.
He added that the next key catalyst for Eyegate Pharma’s shares would be the results from the company's Phase 1b/2a clinical trial, which is evaluating the compound in patients who have undergone cataract surgery with implantation of a posterior chamber intraocular lens. The company is expected to report top-line data from this study in 1Q16.
“A positive result here will increase the probability that EGP-437 can be used to treat a second indication in the front of the eye, which is a substantially larger addressable market than uveitis,” the Chardan Capital report noted.
Eyegate Pharma had inked a licensing agreement with for EGP-437 for uveitis with Valeant Pharmaceuticals Intl Inc (NYSE: VRX) in July 2015. Eyegate Pharma received $1 million in upfront cash payment, clinical development support, milestone payments, and high single digit royalties based on net sales. “We believe that this agreement provides additional external validation of EGP-437,” Nakae wrote.
Latest Ratings for EYEG
|Apr 2016||Noble Financial||Initiates Coverage on||Buy|
|Nov 2015||Maxim Group||Initiates Coverage on||Buy|
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