Analyst Review Pushes AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) Higher

Daily Candle Bar Graph $ACRX July 18

AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX)

AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) impressive run continued in Monday’s trading session. Analysts at Jefferies initiating coverage of the stock with a share price target of $7 a share has apparently helped strengthen bullish sentiments on the stock. The stock was up by 31.25% to end the day at $3.15 a share.

AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX)
Daily Candle Bar Graph $ACRX July 18

Clinical Pipeline

Taking into considerations Friday’s and Monday’s rallies, the stock is now up over 21% YTD. The specialty pharmaceutical company specializes in the development and commercialization of therapies for the treatment of acute pain. The company’s lead product is DSUVIA – currently in a Phase III clinical trial as a novel treatment for moderate to severe acute pain.

Zalviso is the company’s other candidate drug for the management of moderate to severe acute pain for patients in a hospital setting. AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) has already completed a Phase 3 clinical trial enrollment and topline results are expected before the end of the year.

During the first quarter, AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) completed a multi-center, double blind placebo trial of DSUVIA. Compared to placebo, the drug successfully reduced pain in patients over the study’s 12-hour period. The drug was also well tolerated in patients with nausea and headache side effects being reported.

Jeffries Sentiments

Early last month the U.S. Food and Drug Administration (FDA) canceled a review of the DSUVIA because of the product’s profile. Analysts at Jefferies believe the drug will be approved in October in a move that observers believe should help push the stock higher.

According to analysts, FDA approval should set the ground running on a potential European approval in the first quarter of next year. The equity firm believes the drug has a 75% and 80% chance of gaining regulatory approval in the U.S. and Europe respectively

“ACRX is under-valued due to potent oral opioid Dsuvia’s promise in medically supervised acute pain markets (~92M patients) and we see high likelihood of U.S./EU approvals in Q4’17/H1’18. Risk/reward is favorable into H1’18 with floor of ~$1.25 (no approvals) vs. $12/share (upside scenario),” Jefferies analysts in a statement.

Separately, AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) reported a net loss of (-$15.6) million in the first quarter compared to a net loss of (-$11) million reported last year. Net loss from operations also soared to highs of (-$12.1) million compared to (-$8.5) million reported last year. Revenue under the collaboration agreement with Grunenthal totaled $3 million compared to $1.8 million as of last year.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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