JMP Securities has sustained its Market Outperform rating and $9.00 price target for Aquestive Therapeutics (NASDAQ: NASDAQ:AQST).
The firm anticipates the forthcoming top-line results from the oral allergy syndrome (OAS) study for Anaphylm to be a positive catalyst for the company's progress toward a New Drug Application (NDA) submission.
The study, which has completed enrollment, is expected to yield results within the coming weeks as guided by the company's management.
JMP Securities views the OAS study not only as a means to gauge product utility but also as an opportunity to further differentiate Anaphylm from the recently approved epinephrine nasal spray, Neffy.
According to JMP Securities, the completion of the study and the pending results should serve as a de-risking event for Aquestive Therapeutics, with the potential to minimize stock volatility. The firm's confidence in the stock is reflected in its risk-adjusted, discounted cash flow-derived price target.
In other recent news, Aquestive Therapeutics has seen substantial developments in its product pipeline and financial performance. The company reported a significant 52% increase in total revenues for Q2 2024, reaching $20.1 million, primarily driven by license and royalty revenue.
However, a decrease in manufacturing and supply revenue and an increase in research and development costs led to a revised 2024 revenue outlook of $57-60 million and an anticipated non-GAAP adjusted EBITDA loss of $20-23 million.
Aquestive recently completed enrollment for its oral allergen challenge study, a key step in the development of Anaphylm, an epinephrine sublingual film. The company also completed the first human clinical study for AQST-108, an epinephrine topical gel aimed at treating Alopecia areata.
Furthermore, the U.S. Food and Drug Administration (FDA) approved Aquestive's novel non-injection-based epinephrine device for severe allergic reactions, marking a significant shift from traditional needle-based treatments.
H.C. Wainwright increased its price target for Aquestive Therapeutics shares to $10.00 from the previous $9.00, while maintaining a Buy rating on the stock. This adjustment follows Aquestive Therapeutics' recent virtual investor event, where the company presented its Adrenaverse technology platform and outlined clinical development plans for its pipeline products.
The revised valuation from H.C. Wainwright primarily considers the potential contributions from three of Aquestive's products: Libervant for the treatment of seizure clusters, Anaphylm for anaphylaxis, and AQST-108 for Alopecia areata.
InvestingPro Insights
Aquestive Therapeutics' (NASDAQ:AQST) recent market performance aligns with JMP Securities' optimistic outlook. InvestingPro data reveals a striking 264.66% price total return over the past year, with a robust 102.08% return in the last three months alone. This strong momentum underscores investor confidence in the company's potential, particularly as it approaches key milestones like the anticipated OAS study results.
InvestingPro Tips highlight that AQST holds more cash than debt on its balance sheet, which could provide financial flexibility as the company progresses towards its NDA submission for Anaphylm. Additionally, the company's liquid assets exceed short-term obligations, potentially offering a buffer for research and development expenses.
However, it's worth noting that analysts do not anticipate the company to be profitable this year, which is consistent with the company's current focus on product development rather than immediate profitability. This aligns with the article's emphasis on the importance of the upcoming OAS study results as a catalyst for the company's future.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Aquestive Therapeutics, providing deeper insights into the company's financial health and market position.
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