On Thursday, Uddin reiterated his “Speculative Buy” rating and $8.70 target price for Acasti, representing a projected 12-month return of 469 per cent at the time of publication.
Acasti released its fourth quarter financials on June 26, recording $0.0 million in revenue and a Q4 net loss of $16.8 million or $0.22 per share compared to last year’s Q4 loss of $8.1 million or $0.32 per share. Uddin says that the larger net loss is down to higher than expected operating expenses while at the same time contending that financials are less important at this time as Acasti is still clinical-stage.
Uddin says a key catalyst for the stock is less than six months away, as the company looks to have top line results on two TRILOGY Phase III trials with CaPre in December 2019, with key secondary endpoints expected next March.
The analyst says that now’s the time for investors to hop on ACST, saying that last year’s positive results from Amarin should significantly expand the size of the omega-3 market.
“Amarin has submitted an sNDA seeking to expand Vascepa’s label to include the drug’s benefit in reducing risk of major cardiovascular adverse events – the PDUFA data is Sep. 28th, 2019. If approved, the U.S. OMG3 market would be open to 80 millon patients with hypertriglyceridemia or HTG (TG Levels ≥ 200 mg/dl), up from original target base of 3M patients with severe HTG (TG Levels ≥ 500 mg/dl),” Uddin says in an update to clients.
“In previous trials Acasti’s CaPre demonstrated non-inferior efficacy but superior safety and pharmacokinetics (no food effect) relative to marketed OMG3 drugs (Lovaza and Vascepa). Accordingly, we believe CaPre should become the best in class – a best-in-class drug should achieve market leadership easily, regardless of its order of market entry,” he says.
“ACST has a strong looking chart as the stock has consolidated for three years. Volume has now picked up – the stock has moved out of its triangle formation. We expect ACST to have a good run into Phase III results,” says Uddin.
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