Specialty pharmaceutical company Correvio Pharma (TSX, NASDAQ:CORV) is up 210 per cent year-to-date, but the run is over for the time being, says André Uddin of Mackie Research, who has downgraded his rating from “Speculative Buy” to “Hold.”
In early June, Correvio announced that it had received notice from the US FDA that it could resubmit its new drug application (NDA) for anti-arrhythmic drug Brinavess, an event which caused the stock to jump more than 50 per cent in trading between June 11 and June 13.
Uddin says that the stock’s had a decent run and that he is now monetizing Correvio, one of Mackie’s four top picks for 2018.
“We view this downgrade as a trading call, CORV is now above our previous valuation of $3.30 and the stock has moved up relatively quickly since the positive Brinavess announcement. We expect the stock to take a breather,” he says in a client note on Monday (all figures in US dollars).
The analyst expects CORV to generate revenue of $7.1 million and a fully diluted EPS of negative $0.24 per share. Uddin has increased his 12-month target price from $3.30 to $4.70, representing a projected return of negative two per cent at the time of publication.
Correvio will be announcing its second quarter 2018 financial results on Tuesday.