This Rare Disease Focused Stock Pipeline Is Underappreciated, Analyst Initiating Coverage Says

  • Cantor Fitzgerald has initiated coverage on KemPharm Inc (NASDAQ: KMPH) with an Overweight rating and a price target of $20.

  • Per the analyst, KMPH’s products, pipeline, and execution capability are underappreciated. Therefore, upward earnings-estimate revisions and pipeline advancements should drive the stock higher.

  • KMPH focuses on the rare central nervous system and related disorders. KMPH’s AZSTARYS is the first and only approved methylphenidate-based drug containing serdexmethylphenidate (SDX) indicated for attention deficit hyperactivity disorder (ADHD).

  • The FDA approved the drug in March 2021.

  • The company has shifted its pipeline to focus on rare diseases with arimoclomol for NPC (Niemann-Pick disease) and KP1077 for rare sleep disorders.

  • Cantor also believes KP1077 could capture a large share of the idiopathic hypersomnia market based on potential clinical differentiation and combination usage.

  • Total cash of $107.4 million is expected to runway into 2026.

  • Price Action: KMPH shares are trading up 2.85% at $4.52 on the last check Thursday.

Latest Ratings for KMPH

Date

Firm

Action

From

To

Jan 2022

HC Wainwright & Co.

Upgrades

Neutral

Buy

Apr 2021

HC Wainwright & Co.

Maintains

Neutral

Mar 2021

HC Wainwright & Co.

Downgrades

Buy

Neutral

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