Clearing Up Misconceptions Surrounding Aerie Pharmaceuticals

Cantor Fitzgerald reiterated its Buy rating and $50 price target on Aerie Pharmaceuticals Inc AERI, as the company provided new clinical data to clear up residual misconceptions and uncertainties regarding the Roclatan Phase 3 trial.

Analyst Elemer Piros noted that Aerie enrolled patients with the mean intraocular pressure of 23.7 mm of mercury, as opposed to the belief held by some that the enrolled patients had only mild glaucoma. The analyst also noted that Rhopressa, one of the ingredients of Roclatan, showed equal efficacy as that of the standard of care, namely latanoprost.

Cantor also noted that Roclatan caused mild redness in 50 percent of the patients, while prostaglandins, including latanoprost, was associated with hyperemia in 47-69 percent of the patients. Only 18 percent of the Roclatan had consistent redness.

The firm noted that the results of a pre-marketing survey revealed 72 percent stated they would adopt Roclatan moderately. The same respondents also stated they would prescribe Rhopressa to 20 percent of its patients two years after the launch in the US. The firm estimates peak sales of the 2 drugs to be at $1.3 billion.

At time of writing, the shares of the company were up $3.42 at $40.60.