Market Overview

BMO Smells Opportunity In OptiNose

BMO Smells Opportunity In OptiNose
The Daily Biotech Pulse: Vertex Awaits FDA Verdict, Strongbridge Falls On Offering, ReShape's Woes Continue
58 Biggest Movers From Yesterday

Wall Street firms have given rave reviews for OptiNose Inc (NASDAQ: OPTN), which IPO-ed recently.

BMO Capital Markets was no exception, assigning its top rating to shares of the company.

The Analyst

BMO issued its initiation note on OptiNose on Tuesday, with Gary Nachman being the lead analyst.

The Rating

BMO initiated OptiNose with an Outperform and $29 price target. 

The Thesis

OptiNose's exhalation delivery system, or EDS, which is focused on high and deep intranasal deposition of a drug, offers significant improvement over current nasal sprays and aerosols, Nachman said. (See Nachman's track record here.)

The company's lead product Xhance was recently approved for nasal polyps, with a launch planned for the second quarter of 2018, the analyst said. 

Positive feedback from physicians supports the significant opportunity for Xhance, Nachman said. Expanding Xhance to broader chronic sinusitis, or CS, would expand the opportunity further, the analyst said. BMO estimates peak sales of about $700 million for Xhance.

BMO also sees opportunities outside of the ENT/allergy sector, including the potential for "nose-to-brain" delivery of drugs treating certain CNS conditions. This, coupled with the company being a potential M&A target, represents upside to the stock, Nachman said. 

Price Action

OptiNose shares were sliding 6.70 percent to $19.37. Having recorded a listing gain of 19 percent on its Oct. 13 debut,  the stock has been trending broadly higher since then.

Related Link: 

CarGurus, Hair Transplant Firm Among This Week's IPOs

Photo Courtesy Of OptiNose.

Latest Ratings for OPTN

Aug 2018BMO CapitalMaintainsOutperformOutperform
Aug 2018Cantor FitzgeraldInitiates Coverage OnOverweight
Nov 2017JefferiesInitiates Coverage OnBuy

View More Analyst Ratings for OPTN
View the Latest Analyst Ratings

Posted-In: BMO Capital Markets Gary NachmanAnalyst Color Health Care Price Target Initiation Analyst Ratings General Best of Benzinga


Related Articles (OPTN)

View Comments and Join the Discussion!

Should You Join The Lending Club Bulls Ahead Of Q3 Earnings?

What's Powering This Robotics ETF