Procurement News Notice |
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| PNN | 1715 |
| Work Detail | Recro Pharma (NASDAQ:REPH) received a buy investment rating Monday from Janney Montgomery Scott, which initiated coverage of the pharmaceutical company’s stock with a price target of $21 per share. The initiation comes as Recro is in the late stages of developing intravenous NanoCrystal meloxicam for acute post-operative pain. meloxicam has been approved in the US since 2000, is approved in more than 70 countries, and has been used by more than 50 million patients, while Recro’s intravenous meloxicam uses a licensed technology to stabilize microparticles, Janney noted. “In our view, the use of a previously approved and broadly used drug formulated in a previously approved delivery system significantly reduces the risks normally associated with new product development in the pharmaceutical industry,” the firm said. After Recro reported positive data in July from its first phase 3 trial, Janney said it expects similar results from the second phase 3 trial in the fourth quarter of this year, which it said would set up FDA approval to occur in the first half of 2018, with a launch expected in the second half of 2018, “a process we think should translate into significant capital appreciation for investors.” Recro’s intravenous NanoCrystal meloxicam has a “better product profile than successful commercial competitor” Mallinckrodt’s (MNK) Ofirmev (IV acetaminophen), Janney said. “Advantages include more rapid and less frequent administration,” the firm added, noting NSAIDs–nonsteroidal anti-inflammatory drugs, a category that includes meloxicam–are typically considered to be more potent analgesics than acetaminophen. “Thus, we think IV meloxicam can support higher peak sales than Ofirmev,” which had fiscal 2015 net revenue of $263 million, Janney added. Janney also noted Recro has a contract-manufacturing business that generates more than $50 million in revenue and positive cash flows. The firm said it relied upon the midpoint of its estimate of the potential commercial life for IV meloxicam to determine the valuation for REPH, arriving at a fair-value range of $21 to $27 per share; it used the low end of the range for its price target on the stock. That value is well above the stock’s Friday closing price of $9.15, hence the buy rating. The stock decreased 0.11% or $0.01 on August 26, hitting $9.15. Recro Pharma Inc (NASDAQ:REPH) has risen 12.96% since January 25, 2016 and is uptrending. It has underperformed by 2.59% the S&P500. Recro Pharma, Inc. is a clinical-stage specialty pharmaceutical company. The company has a market cap of $108.35 million. The Firm is engaged in developing products for hospitals and ambulatory care settings that is developing non-opioid products for treatment of serious acute pain. It currently has negative earnings. The Company’s lead product candidate is an injectable form of meloxicam. The information provided on this website is for individual use only and should be considered strictly informational in nature. The article is not advice, and should not be treated as such. We are in no way responsible for any investment loss or damages. All content in our articles is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a solicitation of the purchase or sale of any securities. Viewers should always consult with a licensed securities professional before purchasing or selling any securities of companies profiled or discussed in our articles. It is possible that a viewer’s entire investment may be lost or impaired due to the speculative nature of the companies profiled. We make no recommendation that the securities of the companies profiled or discussed in on our website should be purchased, sold or held by investors. |
| Country | United States , Northern America |
| Industry | Financial Services |
| Entry Date | 02 Sep 2016 |
| Source | http://www.consumereagle.com/recro-pharma-initiated-at-buy-by-janney-price-target-set-at-21share-nasdaqreph/179016/ |
