Intel stock spikes after report of possible US government stake
On Monday, H.C. Wainwright adjusted its outlook on Eton Pharmaceuticals (NASDAQ:ETON), raising the price target to $17.00 from the previous $15.00 while maintaining a Buy rating on the company's stock. The revision follows Eton's recent acquisition of Galzin, an FDA-approved treatment for Wilson Disease, from TEVA Pharmaceuticals.
According to InvestingPro data, ETON has demonstrated remarkable momentum with a 199.5% return over the past year, and current analysis suggests the stock is trading near its Fair Value. Eton Pharmaceuticals secured the rights to Galzin for an upfront payment of $7.0 million, with an additional $0.2 million for product inventory.
Eton Pharmaceuticals is set to begin U.S. commercialization of Galzin in the first quarter of 2025. The company's existing sales force, which is already experienced in metabolic disease treatments, is expected to facilitate the U.S. market entry of Galzin, potentially contributing to the company's long-term growth. Furthermore, Eton has agreed to a 10% royalty on net U.S. sales of the drug for a decade following the first commercial sale.
The transaction also includes provisions for the European market, where Eton will supply Galzin, known in the EU as Wilzin, to a third-party responsible for its commercialization. However, H.C. Wainwright's current financial model for Eton does not include projected revenues from the EU market.
Analysts at H.C. Wainwright estimate that Galzin could generate revenue of $0.9 million in 2025, with expectations for growth to $5.1 million by 2030. This projection is based on the understanding that fewer than 5,000 patients are currently treated for Wilson Disease in the U.S., and clinical data suggests that around 30% could be candidates for zinc therapy, which Galzin provides.
The company has not disclosed pricing details for Galzin, but the analysts' revenue projections are described as conservative. InvestingPro subscribers can access additional insights, including 8 more ProTips and a comprehensive Pro Research Report that provides deep-dive analysis of ETON's financial health and growth prospects.
In other recent news, Eton Pharmaceuticals has seen significant developments. The company recently announced the acquisition of U.S. rights to Amglidia, a treatment for neonatal diabetes mellitus, from AMMTeK. The deal includes payments up to $2.35 million contingent upon FDA-related milestones, and a 14% royalty on net sales payable to AMMTeK. Eton Pharmaceuticals plans to engage with the FDA in early 2025 to define the regulatory pathway for Amglidia, with the launch anticipated in the first quarter of 2027.
In the financial sphere, Eton Pharmaceuticals reported its 15th consecutive quarter of revenue growth, with a 40% increase in product sales amounting to $9.8 million and a positive GAAP net income of $0.6 million. H.C. Wainwright has responded by lifting its target for Eton Pharmaceuticals shares to $15.00 from $11.00, maintaining a Buy rating.
In addition to these developments, Eton Pharmaceuticals has revealed plans to expand its rare disease portfolio, targeting 10 commercial products and $100 million in revenue. The company aims to enhance Increlex sales and is exploring growth opportunities in Europe. Despite anticipated rises in SG&A expenses due to an expanded sales force and investments in infrastructure, Eton maintains a strong cash balance of $20.3 million.
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