Health and Healthcare
Why Aldeyra Therapeutics Could Have Exponential Upside
Published:
Last Updated:
Aldeyra Therapeutics Inc. (NASDAQ: ALDX) is looking strong going into the second quarter of 2016. Not only does this company have a good cash position, but it also it has a strong pipeline as well. As a result, one key analyst has decided to weigh in on the firm and where it stands to go from here.
Janney Montgomery Scott reiterated a Buy rating and $25 fair value on expected utility for aldehyde trapping in topical and systemic indications.
The company reported 2015 year-end cash of $27.6 million. That, combined with the $3.6 million-potential-remaining credit facility, is expected to fund operations through 2017, not taking into account expenses for new studies.
Phase 2 data for uveitis is on track for the second quarter of 2016, and for Sjogren-Larsson (SLS) for second quarter or third quarter.
In the report, Janney detailed:
Aldeyra reported a 64% year over year increase in operating expenses. The increased expenses are largely attributable to increased R&D from the 3 phase 2 trials. Once the systemic formulation of the drug is available, the company intends to expand into other inflammatory indications, which could potentially further add to the expenses. As mentioned above, we model significant new expenses for clinical development. Therefore, we model equity financings in the third quarter of 2016 and third quarter of 2017. These assumptions may be overly aggressive due to management comments that the company may partner the ocular indications. Our valuation also assumes retention of ownership for all 3 indications, AC, uveitis, and SLS, at this time.
Shares of Aldeyra closed Friday at $4.24, with a consensus analyst price target of $21.20 and a 52-week trading range of $3.39 to $11.79.
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.