Street Calls of the Week
SAN DIEGO - ARS Pharmaceuticals, Inc. (NASDAQ:SPRY), a pharmaceutical company with a market capitalization of $1 billion and strong financial health according to InvestingPro data, announced Wednesday that the European Patent Office (EPO) has upheld all claims in its patent covering nasal spray epinephrine formulations that include alkyl-glycoside, such as Intravail.
The European patent (EP 3678649), validated in over 30 European countries, provides coverage for the company’s neffy epinephrine nasal spray until at least 2039. This follows a similar victory earlier this year when the United States Patent and Trademark Office upheld key claims for U.S. Patent No. 10,682,414 after an Inter Partes Review challenge and subsequent appeal.
"The decisive and unanimous opinion of the EPO committee in rejecting all of the opposition arguments and upholding the novel claims in our European patent supports the strength and validity of our extensive patent portfolio," said Richard Lowenthal, Co-Founder, President and CEO of ARS Pharma.
Neffy is indicated for emergency treatment of type I allergic reactions, including anaphylaxis, in adults and children aged 4 years and older who weigh 33 lbs. or greater. The nasal spray format offers an alternative to traditional epinephrine auto-injectors.
According to information provided in the company’s press release, approximately 40 million people in the United States experience Type I allergic reactions. Of the estimated 20 million people diagnosed and treated for severe allergic reactions that may lead to anaphylaxis, only 3.2 million filled their active epinephrine auto-injector prescription in 2023, with only half consistently carrying their prescribed device. This significant market opportunity aligns with the company’s impressive revenue growth, though InvestingPro data shows analysts expect revenues to decrease slightly next year.
ARS Pharmaceuticals is a commercial-stage biopharmaceutical company focused on developing treatments for allergic reactions that could lead to anaphylaxis. With a healthy current ratio of 6.17 and more cash than debt on its balance sheet, the company appears well-positioned to execute its growth strategy. According to InvestingPro analysis, the stock currently trades below its Fair Value, with analyst price targets suggesting significant upside potential. Subscribers can access the full Pro Research Report for detailed insights into SPRY’s financial health and growth prospects.
In other recent news, ARS Pharmaceuticals has secured a $100 million loan from RA Capital Management and OMERS Life Sciences to support the commercial expansion of neffy, its FDA-approved needle-free epinephrine nasal spray. This financial boost comes as the company continues to gain traction in the market. Japanese regulators have also approved neffy for emergency allergic reactions, marking it as the first needle-free epinephrine treatment available in Japan for both adults and children over 15 kilograms.
Furthermore, Raymond James has reiterated its Strong Buy rating for ARS Pharmaceuticals, citing positive market share trends for neffy, which saw a week-over-week increase in market share from 3.35% to 3.74%. Roth/MKM has initiated coverage on ARS Pharmaceuticals with a Buy rating and a $40.00 price target, reflecting optimism about neffy’s potential. These developments highlight the growing acceptance and potential of ARS Pharmaceuticals’ innovative product in both domestic and international markets.
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