Binary events are often the key element in moving a biotech stock higher. Negative binary results or actions often can move shares drastically lower. We scan our 24/7 Wall Street research data base on a regular basis looking for upcoming catalysts that can have the potential to move stocks. A new RBC report focuses on top biotech stocks with key data readouts coming in 2016.
RBC focused on 12 specific stocks with data expected in 2016. We screened those stocks for the companies with Phase 3 data that seem to be the farthest along and offer the best chance for approval. The stocks also have to be rated Outperform at RBC. It should be noted that buying and trading these stocks is only suitable for very aggressive accounts.
This company has Phase 3 data coming that the RBC team feels has a very good chance of working. Aerie Pharmaceuticals Inc. (NASDAQ: AERI) is a clinical-stage pharmaceutical company focused on the discovery, development and commercialization of first-in-class therapies for the treatment of patients with glaucoma and other diseases of the eye.
Aerie recently reported the successful results of its second Phase 3 registration trial in the United States, named Rocket 2, wherein the primary efficacy endpoint was to demonstrate non-inferiority of IOP lowering for Rhopressa compared to timolol. Rocket 3, a 12-month safety-only study, is currently in progress, as is a fourth Phase 3 trial for Rhopressa, named Rocket 4. Aerie expects to file a new drug application for Rhopressa with the FDA in the third quarter of 2016.
Rhopressa is being developed as a once-daily dosed glaucoma therapy. This more convenient dosing regimen is expected to result in higher patient compliance, which may lead to improved outcomes. With 31 million prescriptions being written for glaucoma, this could be a huge winner. The analysts are also bullish on Roclatan which is a fixed-dose combination of Rhopressa and latanprost to increase fluid outflow through uveoscleral pathway, the eye’s secondary drain.
The RBC price target for the stock is $50, and the Thomson/First Call consensus target price is $45.14. Shares closed on Friday at $19.89.
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