Egalet Corp (NASDAQ:EGLT) Tablets Receives Coverage

Egalet Corp (NASDAQ:EGLT)

Egalet Corp (NASDAQ:EGLT) gained 7.81% after announcing that a large payer will provide coverage of ARYMO ER oral use tablets, for its Medicare Part D members. The new coverage which will target about 1.4 million patients, will include all Egalet Brands, and takes immediate effect.

Egalet Corp (NASDAQ:EGLT) Tablets Receives Medicare Coverage

According to Chief Commercial Officer, Patrick Shea, providing coverage is important, given the high incidence of chronic pain in the population. Arymo ER is an extended morphine product with abuse-deterrent features for severe pain management, requiring constant opioid treatment.

“Formulary coverage within this particular payer’s Medicare Part D population comes sooner than we had expected, and is a promising development at this stage of our commercial launch of our abuse-deterrent, ER morphine, ARYMO ER,” said Mr. Shea.

Egalet Corp (NASDAQ:EGLT) has underperformed the specialty pharmaceutical space this year. The stock is down by more than 80% for the year, as it continues to trade in a downtrend. However, senior Biotechnology analysts at Zack’s Research, John Vandermosten, remains optimistic about EGLT’s prospects amidst the stock’s sell-off.

Analyst’s Focus

Analysts initiated coverage of the stock with a price target of $6, based on estimates of three key growth products. According to the analyst, Egalet Corp (NASDAQ:EGLT)’s pain management products have the potential to generate substantial value in the $24 to $40 billion opioid pain relief market.

According to the analyst, an 81% increase in second-quarter revenue provides an insight of what could be at stake with the three products. Vandermosten and his team expect double-digit growth over the next few years to drive revenues to over $100 million. The increase should lead to first positive earnings.

Egalet Corp (NASDAQ:EGLT) has also forged a number of relationships – including one with a payor with over 24 million clients and another one with Ascend Therapeutics. These partners are expected to lead to high growth rates going forward.

Egalet Corp (NASDAQ:EGLT) has the financial muscle needed to accelerate sales of its three primary products. The specialty pharmaceutical company exited the second quarter with $87 million in its cash balance after it conducted an equity offering where it raised $30 million. The current cash levels are more than sufficient to support the business until 2020.

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.
Don’t miss out! Stay informed on $EGLT and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Previous ArticleNext Article

Leave a Reply

Your email address will not be published. Required fields are marked *