HC Wainwright's New Buy Rating On Lipocine Suggests 500% Upside

H.C. Wainwright’s Corey Davis believes that what differentiates Lipocine Inc LPCN from its competitors is the company’s oral drug delivery technology, called “Lip’ral”.

Davis initiated coverage of the company with a Buy rating and price target of $25.

Successful Pipeline

The analyst mentioned that Lipocine’s drug LPCN 1021, brand name Tylando, received a Complete Response letter on June 29, 2016, and the company was expected to provide more details on the path forward in the near future.

In addition, Lipocine has also announced the success of LPCN 1111, another drug candidate, in Phase 2b trials, on September 26, while LPCN 1107 is set to enter Phase 3 trials.

Competitive Edge

Davis went on to explain that the company’s oral drug delivery technology, “Lip’ral” was based on lipidic compositions that “form optimal dispersed phase in the gastrointestinal tract to improve absorption of insoluble drugs, it also minimizes physiological variables such as dilution, pH and food effects.”

The analyst believes that Lipocine currently has the most advanced product in development for oral testosterone, as compared to its competitors who have either topicals or injectibles.

In addition, testosterone replacement therapy has been proven to be effective and safe. All that the company now has to do is to prove that testosterone can be delivered orally and ensure that its products meet the FDA standards.

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