Acasti Pharma stock has 1000% upside, Mackie Research says

Following pharmaceutical company Amarin’s positive cardiovascular results for its omega-3 fish oil capsules, Acasti Pharma (Acasti Pharma Stock Quote, Chart TSXV, NASDAQ:ACST) gets a big target raise from Mackie Research’s André Uddin.

On Monday, the analyst reiterated his “Speculative Buy” for Acasti with the new target of $8.70 (previously $2.00), implying a return of 1015% at the time of publication.

Amarin’s Vascepa drug, approved to treat severe hypertriglyceridemia, is reported to have hit its primary endpoint in a cardiovascular outcome REDUCE-IT trial involving 8,175 patients. The company says Vascepa significantly reduced the risk of serious cardiovascular events in comparison with a placebo, reducing the risk by 25 per cent.

Uddin says no other drug or drug candidate has “come close to achieving these results” and that the results elevate the omega-3 drug class — including Acasti’s CaPre drug — to “blockbuster status” in the treatment of adverse cardiovascular events.

“Acasti’s CaPre is potentially a best-in-class OMG3 drug,” says Uddin. “We are significantly increasing our US sales estimates for CaPre – we believe CaPre has blockbuster potential. As an example, Lipitor achieved stronger sales than earlier-launched statins based on superior efficacy with no CV outcome data. CaPre should also become more attractive to potential licensees with the REDUCE-IT data.”

Uddin notes that currently available omega-3 drugs for severe hypertriglyceridemia have unwanted side effects, while CaPre has demonstrated in previous clinical studies to significantly lower triglycerides without elevating LCL cholesterol or having food effects, along with having an excellent safety profile and no fishy aftertaste.

The analyst says CaPre’s Phase III trial is progressing well, with top-line results expected by late 2019.