Alcobra Shares Initiated At Buy; Cantor Sees 'Greater Opportunity For Success'

Cantor Fitzgerald's Maria Goldstein initiated Alcobra LtdADHD at Buy with a price target of $16.00.

Goldstein believes Alcobra's MDX, a non-stimulant-based drug to treat ADHD, has "an opportunity to achieve a statistically significant result with substantive hanged incorporated in the ongoing Phase III trial." Despite the failure of the first Phase III study, the analyst thought MDX had a better shot this time after implementing several protocol changes.

Related Link: Goldman Initiates Specialty Pharma At Neutral, Highlights "A Confluence Of Concerns"

Thriving Market Conditions

Additionally, the "large" ADHD market has been growing at healthy levels according to the Goldstein. "The market has been fueled by the growing awareness of ADHD [...] changes in diagnosing the disorder [...] and enhanced formulations of existing stimulant base drugs," said the analyst. Alcobra's MDX was expected to be a viable competitor, able to both "cannibalize share of existing drugs as well as grow the market," stated Goldstein.

At the time of writing, Alcobra was trading at $5.53.