Gemphire Therapeutics' Oral Cholesterol Drug Could Have $2.8 Billion Potential In U.S. Market

Canaccord Genuity said
Gemphire Therapeutics IncGEMP
's oral cholesterol drug Gemcabene has a peak U.S. market potential of $2.8 billion. The firm initiated coverage of the stock with a Buy rating.

The brokerage also set a price target of $17, implying a potential upside of 67 percent over Monday's close. On Tuesday, shares gaped open higher at $10.49 and have touched a new 52-week high of $11.33.

"Importantly, we feel gemcabene's oral formulation should enable pricing far below highly efficacious but expensive PCSK9 drugs, enabling meaningful uptake. Assuming positive data, we believe the drug could reach the US market in the broader cholesterol populations by 2020," analyst John Newman wrote in a note.

Gemcabene, which was licensed from Pfizer Inc. PFE, has shown no evidence of drug-drug interactions with statins at any statin dose level, which bodes well for the safety profile of the drug.

"Combination therapy with statins is critical since statins are the preferred therapy for high cholesterol and are generic. We believe that the ability to safely combine gemcabene with statins is also very important to FDA from a safety perspective, which we view as an advantage for the company," Newman added.

At time of writing, shares of Gemphire had climbed 11.45 percent on the day to $11.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
Posted In: Canaccord GenuityGemcabeneJohn NewmanAnalyst ColorBiotechLong IdeasHealth CarePrice TargetInitiationAnalyst RatingsTrading IdeasGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.