This Rare Disease Focused Stock Pipeline Is Underappreciated, Analyst Initiating Coverage Says

This Rare Disease Focused Stock Pipeline Is Underappreciated, Analyst Initiating Coverage Says
  • Cantor Fitzgerald has initiated coverage on KemPharm Inc KMPH with an Overweight rating and a price target of $20.
  • Per the analyst, KMPH's products, pipeline, and execution capability are underappreciated. Therefore, upward earnings-estimate revisions and pipeline advancements should drive the stock higher. 
  • KMPH focuses on the rare central nervous system and related disorders. KMPH's AZSTARYS is the first and only approved methylphenidate-based drug containing serdexmethylphenidate (SDX) indicated for attention deficit hyperactivity disorder (ADHD). 
  • The FDA approved the drug in March 2021.
  • The company has shifted its pipeline to focus on rare diseases with arimoclomol for NPC (Niemann-Pick disease) and KP1077 for rare sleep disorders.
  • Cantor also believes KP1077 could capture a large share of the idiopathic hypersomnia market based on potential clinical differentiation and combination usage.
  • Total cash of $107.4 million is expected to runway into 2026.
  • Price Action: KMPH shares are trading up 2.85% at $4.52 on the last check Thursday.

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