The continuation of strong growth at Tribute Pharmaceuticals (TSXV:TRX) has earned the company a price target raise from Laurentian Bank Securities analyst Joseph Walewicz.
Yesterday, Tribute reported its Q1, 2015 results. The company lost $5.18-million on revenue of $5.59-million, a topline that was up 60% over last year’s first quarter.
“These solid results culminate the successful integration of the four Novartis products into our growing product portfolio with strong organic growth from our existing products with Cambia leading the way,” said CEO Rob Harris. “This integration has driven the financial growth of Tribute’s top and bottom lines and represents our strategy of completing transactions which we believe will have a significant financial impact. We remain focused on continuing to grow our business in 2015 through organic sales growth with our Canadian sales force, future acquisitions in both Canada and the U.S. and longer-term through our rights to bilastine, a product widely approved globally for allergic rhinitis and hives.”
Walewicz notes that Tribute has filed with Health Canada for approval of its novel antihistamine, bilastine, which he expects will launch midway through 2016. He also says there are encouraging signs for the company’s migraine treatment, Cambia, which was able to implement some price increases.
In a research update to clients yesterday, Walewicz maintained his “Buy” rating on Tribute Pharmaceuticals, but raised his one year target price on the stock from 1.00 to $1.20, implying a return of 18.8% at the time of publication.
The analyst notes there is potential upside beyond his new target.
“While we have no acquisitions, in-licensing or out-licensing agreements in our forecast, TRX continues to be in active discussions with parties,” noted Walewicz.
Disclosure: Tribute Pharmaceuticals is an annual sponsor of Cantech Letter.