OptiNose Analysts Projects Prescription Growth In 2019, Beyond

OptiNose Inc OPTN has introduced a new and simplified co-pay assistance program that's led to good script performance, according to Cantor Fitzgerald. The ear, nose and throat drugmaker expects increased coverage wins for Xhance in 2019, the sell-side firm said. 

The Analyst

Cantor Fitzgerald’s Brandon Folkes maintained an Overweight rating on OptiNose with a $27 price target.

The Thesis

Increased access, better affordability, a sales force expansion and higher awareness of good efficacy data should continue to drive script growth in 2019 and beyond, Folkes said in a Thursday note. 

OptiNose believes that doctors may have underestimated their patients' ability and willingness to pay, the analyst said. The co-pay assistance program may have helped doctors better understand the affordability of Xhance for patients, making them more willing to prescribe the nasal spray, he said. 

The company is unlikely to make any major near-term changes to its commercial strategy, Folkes said.

OptiNose plans to launch its day sample program soon, which could “increase the breadth of prescribers as well as the depth of prescriptions among current high prescribers,” the analyst said. 

The company ended 2018 with $200 million in cash and has a cash runway of about two years, according to Cantor Fitzgerald. 

This will give OptiNose the flexibility to invest in the continued launch of Xhance, Folkes said. The company’s $75 million in debt is due in 2023, and it may become eligible for another $25 million loan drawdown this year, he said. 

Price Action

OptiNose shares were down 0.37 percent at $9.38 at the time of publication Thursday. 

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