Market Overview

AcelRX Shares Should More Than Double On Painkiller Assets, Landenburg Says In Bullish Initiation

Share:
AcelRX Shares Should More Than Double On Painkiller Assets, Landenburg Says In Bullish Initiation
Related ACRX
28 Stocks Moving In Monday's Pre-Market Session
31 Stocks Moving In Monday's Pre-Market Session
Massachusetts AG after Purdue Pharma owners for role in opioid crisis (Seeking Alpha)

AcelRx Pharmaceuticals Inc (NASDAQ: ACRX), with two product candidates in its pipeline, is a specialty pharma company focusing on pain management therapies.

The Analyst

Landenburg Thalmann analyst Michael Higgins initiated coverage of AcelRx with a Buy rating and $7 price target.

The Thesis

The company's lead candidate Dsuvia, a 30mcg sufentanil NanoTab placed sublingually by a health care professional via a single-dose applicator, is being touted as a substitute for intravenous opioids, currently the gold standard to treat moderate-to-severe pain in emergency departments, Higgins said in a Thursday note.

The other pipeline asset is Zalviso 15mcg, placed under the tongue by devices controlled by a health care practitioner, the analyst said.

Both the assets have been approved in Europe but have received complete response letters in the U.S. The initial review and CRL have reduced regulatory risks for Dsuvia, Higgins said, adding that he expects the drug to become ubiquitous in some ERs given its risk and tolerability profile. 

"For Zalviso, device improvements have been tested and validated in a post-CRL Phase 3 trial," the analyst said. 

Ladenburg Thalmann projects that an emergency department shortage and shortage of IV opioids will lead to a higher rate of adoption for Dsuvia than the Street expects. 

The firm estimates Dsuvia's market share to cross 2 percent in 2021, and subsequently increase to 12 percent in 2029, with peak revenue of more than $500 million.

"Our Zalviso outlook is more modest as we look for $200 million in peak revenues but for $50 million in 2022 revenues to boost AcelRx's profitability," Higgins said. 

Dsuvia's Adcom, PDUFA and launch updates are the next key events AcelRX, the analyst said. 

The Price Action

AcelRX shares were rallying nearly 6 percent to $3.12 at the time of publication Thursday.

Related Links:

Attention Biotech Investors: Mark Your Calendar For These August PDUFA Dates

Mixed Reviews For Allakos As Sell-Side Starts Coverage Of Biotech

Latest Ratings for ACRX

DateFirmActionFromTo
Oct 2018B. Riley FBRInitiates Coverage OnBuy
Oct 2018JefferiesUpgradesHoldBuy
Oct 2018Ladenburg ThalmannReiteratesBuyBuy

View More Analyst Ratings for ACRX
View the Latest Analyst Ratings

Posted-In: Landenburg Thalmann Michael HigginsAnalyst Color Health Care Price Target Initiation Analyst Ratings General Best of Benzinga

 

Related Articles (ACRX)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
SHWKeyBancMaintains450.0
ACNCitigroupUpgrades169.0
CGBDJP MorganUpgrades15.5
NLYJP MorganUpgrades10.5
NTNXMorgan StanleyUpgrades58.0
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.

Oil Price Analysis: WTI Fell To 200-day MA For The First Time Since October

GBP/USD Forecast: Sterling Destined To Fall Even With UK Retail Sales Rising Strongly