Tuesday, Cantor Fitzgerald initiated coverage on shares of Aquestive Therapeutics (NASDAQ:AQST) with an Overweight rating and set a price target of $17.00, well above the current analyst range of $5.50 to $15.00.
The firm highlighted the company's proprietary oral film technology, PharmFilm, which enables delivery of active pharmaceutical ingredients (APIs) through buccal, sublingual, or lingual administration. This innovation has facilitated partnerships and generated revenue projections between $57 million and $60 million for the year 2024, representing an expected growth of 16% according to InvestingPro data.
Aquestive Therapeutics has utilized its PharmFilm technology to develop Anaphylm, a sublingual film designed for the treatment of Type 1 allergic reactions, including anaphylaxis. Following a positive pre-New Drug Application (NDA) meeting with the Food and Drug Administration (FDA), the company plans to submit an NDA in the first quarter of 2025.
The achievement of predetermined endpoints in numerous studies has been a pivotal step towards this submission. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 6.37, indicating ample liquidity to support its development pipeline.
The analyst from Cantor Fitzgerald expressed a positive outlook on the company's prospects, stating, "We are launching coverage of Aquestive Therapeutics with an OW rating, 12-month PT of $17." The analyst emphasized the strategic timing for investor engagement with Aquestive's narrative, given the recent developments and the upcoming NDA submission.
Aquestive's approach to drug delivery has allowed it to carve out a niche in the pharmaceutical market, with its PharmFilm technology offering a differentiated product pipeline. The anticipated submission of the NDA for Anaphylm in early 2025 marks a significant milestone for the company as it continues to advance its portfolio of treatments. With a market capitalization of $328 million and an impressive gross profit margin of 69%, the company has demonstrated strong execution potential. Investors seeking deeper insights can access
comprehensive analysis and 12 additional ProTips through InvestingPro's detailed research reports.
In other recent news, Aquestive Therapeutics saw a positive shift in its financial health and growth prospects, according to Lake Street Capital Markets.
The firm raised the stock price target for Aquestive, reflecting the anticipated impact of the upcoming Anaphylm catalysts. This valuation is based on a projected revenue of $51.0 million for 2025 and the expansion of Aquestive's product pipeline.
Furthermore, Aquestive received favorable feedback from the FDA for its Anaphylm trial, indicating no additional adult clinical trials are required before the New Drug Application submission, which is expected in the first quarter of 2025. The company also initiated a pediatric trial for Anaphylm, a potential treatment for severe allergic reactions.
In terms of financial results, Aquestive reported a growth in its Q3 2024 financial results, with total revenue reaching $13.5 million, a 4% increase from the same period last year. However, excluding one-time revenue from a terminated agreement, revenues saw a 5% decline.
In other developments, Aquestive Therapeutics reported a reshuffling in its board of directors, with Santo J. Costa stepping down and John S. Cochran assuming the role of Chairman of the Compensation Committee. Lastly, the company is progressing with its lead product candidate, Anaphylm, and is preparing for its potential launch in Q1 2026.
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