XBI - Achieve Life Sciences: Initiating Buy Potential Multi-Billion-Dollar Smoking Cessation Drug
- We are initiating ACHV with a buy rating and a target price of USD 70.
- The company is developing a smoking cessation treatment, cytisinicline, with an estimated USD 200-300M peak sales (risk-adjusted).
- Cytisinicline has completed a phase 3 study, and the top-line data will be released in a few months, which is the key catalyst that we are looking to trade around.
- Cytisinicline is a well-known compound approved in Russia and Vietnam and used in 20m+ patients. This reinforces our conviction around its safety profile as no serious adverse events were noted so far.
- The company’s EV is only 43M, and we like the risk-reward set-up. Therefore, we plan to initiate an option-sized position to play the data readout.
For further details see:
Achieve Life Sciences: Initiating Buy, Potential Multi-Billion-Dollar Smoking Cessation Drug