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On Wednesday, Leerink Partners maintained their Outperform rating and $13.00 price target on Aquestive Therapeutics (NASDAQ:AQST) shares, well above the current trading price of $3.06. The firm’s analyst, Roanna Ruiz, commented on the implications of the recent US District Court ruling regarding Aquestive’s drug product Libervant. The ruling brings uncertainty to Libervant’s future in the US market. However, Ruiz notes that Libervant represents a minor portion (approximately 2%) of Aquestive’s overall valuation, and even in the worst-case scenario, it would only be an incremental negative to the stock. According to InvestingPro data, analyst targets range from $5.50 to $17.00, suggesting significant upside potential despite recent challenges.
Despite the challenges faced by Libervant, Leerink’s positive stance on Aquestive Therapeutics remains largely unchanged. Ruiz highlights that Anaphylm, another of Aquestive’s products, should not be affected by the Libervant litigation and seems to be on track for a New Drug Application (NDA) filing in the first quarter of 2025. Additionally, the analyst believes that the potential of AQST-108, a pipeline product, is still not fully appreciated by investors, given Aquestive’s current low stock levels. InvestingPro data shows the company’s solid revenue growth of 22.56% over the last twelve months, with a healthy gross profit margin of 69.39%.
Regarding the court ruling that vacated the FDA’s approval of Libervant, Ruiz anticipates that Aquestive’s management is actively seeking a way forward and may appeal the decision. This could lead to a more prolonged legal process, potentially resulting in an ambiguous status for Libervant on the US market. However, in a recent conversation with Aquestive’s management, they conveyed a strong commitment to keeping Libervant available, especially for pediatric patients aged 2-5 years who suffer from acute repetitive seizures.
Leerink’s reiterated Outperform rating reflects their confidence in the company’s broader strategy and product pipeline, despite the current legal hurdles for one of its products. The firm’s analysis suggests that the long-term investment thesis for Aquestive Therapeutics remains robust, underpinned by upcoming developments and the intrinsic value of its drug offerings.
In other recent news, Aquestive Therapeutics has been in the spotlight due to several significant developments. The company recently received seven years of orphan drug exclusivity from the FDA for its product Libervant, a buccal film for treating seizure clusters in young epilepsy patients. This exclusivity is expected to extend until April 2031, offering a non-invasive alternative to traditional treatments. Additionally, H.C. Wainwright reaffirmed its Buy rating and $10.00 price target for Aquestive, citing the market exclusivity and Libervant’s advantages as key factors.
In another development, Cantor Fitzgerald initiated coverage of Aquestive Therapeutics with an Overweight rating and a price target of $17.00, highlighting the potential of the company’s PharmFilm technology. This technology has been pivotal in the development of Anaphylm, which is set for a New Drug Application submission in early 2025. Lake Street Capital Markets also raised its price target for Aquestive to $10.00, reflecting optimism about the upcoming Anaphylm catalysts and the company’s expanding product pipeline.
JMP Securities maintained a $9.00 price target for Aquestive, emphasizing the promising results from the Oral Anaphylm Symptom Intervention Study, which demonstrated Anaphylm’s rapid effectiveness in resolving allergen-related symptoms. These recent developments collectively underscore the positive outlook analysts have for Aquestive Therapeutics as it continues to advance its innovative treatments and expand its market presence.
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