Market Overview

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

Gemphire Therapeutics' Oral Cholesterol Drug Could Have $2.8 Billion Potential In U.S. Market
The Daily Biotech Pulse: Syndax Lung Cancer Trial Disappoints, Gemphire To Trim Workforce, Opiant's Offering
48 Biggest Movers From Yesterday

Canaccord Genuity said Gemphire Therapeutics Inc (NASDAQ: GEMP)'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.

Related Link: Argus Upgrades AstraZeneca To Buy, Says Discount Is Too Steep Against Pipeline Potential

Gemcabene, which was licensed from Pfizer Inc. (NYSE: 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!

Latest Ratings for GEMP

Aug 2018JefferiesDowngradesBuyHold
Aug 2018Roth CapitalDowngradesBuyNeutral
Aug 2018Raymond JamesDowngradesOutperformMarket Perform

View More Analyst Ratings for GEMP
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech Long Ideas Health Care Price Target Initiation Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (PFE + GEMP)

View Comments and Join the Discussion!

Latest Ratings

CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Is The Zika Virus Already Impacting The Broader Tourism Market?

10 Biggest Mid-Day Losers For Tuesday