BTIG initiates NRx Pharmaceuticals with $18 price target

On Wednesday, BTIG analyst Thomas Schrader began coverage of NRx Pharmaceuticals, Inc. (NASDAQ:NRXP), currently trading at $1.94, with a Buy rating and a price target of $18.00. According to InvestingPro data, this target aligns with the broader analyst consensus, which ranges from $19 to $45, suggesting significant potential upside for the $32.82 million market cap company. Schrader highlighted the biotechnology company’s focus on developing treatments for suicidal ideation and behavior (ASIB), an area with a significant unmet need and stagnant treatment advancements over the past five decades. InvestingPro analysis indicates the company is currently undervalued, though investors should note that the company is quickly burning through cash and faces profitability challenges.

NRx Pharmaceuticals is currently working on an FDA-approved version of intravenous ketamine to create a standardized treatment for ASIB. The company’s NRX-100 is an improved ketamine formulation that omits an obsolete preservative, which was an irritant in older multiuse vials. Additionally, NRx is developing a combination therapy that includes the NMDA modulator D-cycloserine and the SSRI lurasidone, aimed at enhancing efficacy while reducing toxicity for bipolar patients, who are at a generally high risk for ASIB.

The initial submission package for IV ketamine to the FDA is backed by high-quality, controlled trials that demonstrate the drug’s effectiveness in reducing suicidal ideation and depressive symptoms. Schrader believes that the substantial real-world evidence supporting the drug’s use in this indication will likely be sufficient for approval.

In conjunction with its pharmaceutical developments, NRx is also establishing the HOPE network of "ketamine-plus" treatment centers for patients with ASIB and depression. The company is in the final stages of acquiring nine centers, with plans to expand to between 50 and 200 high-quality facilities. These centers will offer a combination of current ketamine-based treatments, future psychedelic therapies, non-therapeutic approaches like Transcranial Magnetic Stimulation (TMS), and digital therapeutics. The overarching goal of the HOPE network is to systematically address ASIB and improve patient survival rates.

Key upcoming events for NRx Pharmaceuticals include the completion of FDA submissions for NRX-100 and NRX-101, as well as the anticipated feedback from the FDA, which could lead to approvals starting around the end of 2025. With a beta of 1.22, the stock shows moderate market sensitivity. For deeper insights into NRXP’s financial health, valuation metrics, and additional ProTips, check out the comprehensive research report available on InvestingPro.

In other recent news, HOPE Therapeutics, a subsidiary of NRx Pharmaceuticals, has announced significant developments aimed at expanding its interventional psychiatry network. The company is set to acquire Dura Medical (TASE:BLWV), a provider of precision psychiatry services, enhancing its presence on Florida’s West Coast. This acquisition will integrate services like Ketamine Therapy and Transcranial Magnetic Stimulation (TMS) for treating severe depression and PTSD. Additionally, HOPE Therapeutics plans to acquire a majority stake in Neurospa TMS Holdings, which operates six clinics in Florida. Both Dura Medical and Neurospa are revenue-generating and EBITDA positive, expected to bolster HOPE’s financial outlook.

NRx Pharmaceuticals has also made strides in its drug development efforts, filing a New Drug Application (NDA) for NRX-101 and an abbreviated NDA for NRX-100. These filings are part of the company’s strategy to commercialize treatments for central nervous system disorders. H.C. Wainwright has maintained a Buy rating on NRx Pharmaceuticals, reflecting confidence in these developments. Furthermore, NRx Pharmaceuticals reported a 33.5% reduction in operational losses for the fourth quarter of 2024, attributing this improvement to decreased research and development expenses.

The company is optimistic about future growth, with plans to acquire additional psychiatric clinics and achieve profitability by the end of 2025. These strategic moves underscore NRx Pharmaceuticals’ commitment to expanding its treatment offerings and enhancing shareholder value.

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