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Intersect's Pipeline Deserves More Credit; Deutsche Upgrades To Buy

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Intersect's Pipeline Deserves More Credit; Deutsche Upgrades To Buy

Deutsche Bank upgrades Intersect ENT Inc (NASDAQ: XENT) to Buy from Hold after the company made a solid end to 2016 and said the near-term risks related to reimbursement are priced into the shares.

Expansions Ahead

“We acknowledge that reimbursement will be worth watching with uncertainty remaining until at least mid-year, however, with 2 product launches, upcoming data publications, and an improving reimbursement profile over the next 12 months, we believe XENT shares will see multiple expansion,” analyst Brittany Henderson wrote in a note.

Notably, Henderson thinks the market should give more credit to the company’s pipeline. Intersect ENT’s first product for the physician's office, PROPEL Contour, received FDA approval in February.

RESOLVE

Further, the company is on track to submit the NDA for RESOLVE, a steroid eluting intranasal implant, by the end of first quarter.

In fact, Henderson believes RESOLVE represents Intersect ENT’s most exciting pipeline opportunity as it could provide a minimally invasive treatment option for recurrent chronic sinusitis patients who have limited treatment options.

Looking Forward

The analyst still believes 2018 represents a significant year as the company’s physician’s office products are more broadly launched amidst a more favorable reimbursement backdrop.

“Over the next 12 months, we see a host of catalysts that could skew reimbursement more positive including the continued dissemination of the positive ARS position statement, mid 2017 publication of PROPEL Contour data, and YE 2017 publication of RESOLVE clinical trial data,” Henderson added.

At last check, shares of Intersect ENT rose 1.07 percent to $14.15. The analyst also increased her price target to $19 from $15.

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Latest Ratings for XENT

DateFirmActionFromTo
May 2019DowngradesMarket PerformUnderperform
May 2019DowngradesOutperformMarket Perform
Feb 2019MaintainsBuyBuy

View More Analyst Ratings for XENT
View the Latest Analyst Ratings

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