On Friday, Reviva Pharmaceuticals Holdings Inc (NASDAQ:RVPH), currently trading at $1.87, received a new Buy rating from Roth/MKM, accompanied by a 12-month price target of $7.00. The rating is based on a Discounted Cash Flow (DCF) analysis and reflects confidence in the company’s lead product, brilaroxazine, following promising Phase 3 clinical trial results. According to InvestingPro data, analyst targets for RVPH range from $7.00 to $17.00, suggesting significant upside potential from current levels.
The RECOVER-1 study indicated that brilaroxazine effectively treats positive, negative, and cognitive symptoms in schizophrenia patients. The effect size of 0.6 reported in the trial surpasses that of many existing antipsychotics, which has contributed to the analyst’s positive outlook on the stock. The market has responded positively to these developments, with RVPH showing a strong 59.8% return over the past six months.
Despite a current pro forma cash position of approximately $23.5 million, which is expected to fund operations into the first quarter of 2025, concerns about potential near-term dilution were noted. InvestingPro analysis shows the company holds more cash than debt on its balance sheet, though short-term obligations exceed liquid assets with a current ratio of 0.39. Nonetheless, the anticipated New Drug Application (NDA) filing for brilaroxazine in mid-2026 is seen as a significant milestone that could counterbalance funding concerns.
Reviva’s brilaroxazine has the potential to achieve worldwide sales of $1.9 billion by the year 2035, according to the analyst. This projection is a key factor in the optimistic valuation and the establishment of the $7.00 price target for Reviva Pharmaceuticals’ shares.
Investors and market watchers will be closely monitoring the company’s progress as it moves towards the NDA filing and potential market entry of brilaroxazine, aiming to capture a share of the global antipsychotic market.
In other recent news, Reviva Pharmaceuticals has reported positive results from its ongoing trials for brilaroxazine, a new treatment for schizophrenia. The company has seen significant strides in its open-label extension (OLE) trial, with 108 patients completing a full year of treatment and over 250 patients reaching the six-month mark. This data is crucial for Reviva’s planned New Drug Application (NDA) submission to the U.S. Food and Drug Administration (FDA).
Furthermore, Reviva has reported significant reductions in symptom domains from its Phase 3 RECOVER trial for brilaroxazine. The company has also been granted U.S. and European patents for brilaroxazine, further strengthening its intellectual property rights.
In terms of analyst coverage, EF Hutton has initiated a Buy rating on Reviva with a price target of $15.00, primarily driven by the potential of brilaroxazine. H.C. Wainwright also maintains a Buy rating on the company, with an adjusted 12-month price target of $14. Reviva has completed an equity offering, resulting in the sale of approximately 1.9 million shares of common stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.