ABBV - Aldeyra: A Speculative Buy Amid Reproxalap's NDA Resubmission

2024-06-10 13:25:30 ET

Summary

• Aldeyra Therapeutics offers a high-risk/high-reward investment opportunity with its Reproxalap program and promising pipeline beyond Reproxalap.
• Reproxalap has shown positive results in preclinical and clinical trials for the treatment of dry eye disease and allergic conjunctivitis.
• Aldeyra plans to resubmit Reproxalap's new drug application by Q4 2024, with potential FDA approval by Q2 2025, which could trigger potential milestone payments and revenue opportunities.

Thesis

Based on Aldeyra Therapeutics, Inc. (ALDX)'s imminent catalysts (Reproxalap), considering the company holds $133 million in cash, cash equivalents and marketable securities, as per March 31st, with a market cap around $230 million, I believe ALDX is still trading at a discount. Hence, in my opinion, Aldeyra offers a high-risk/high-reward investment opportunity, which supports a "Strong Buy" rating for investors with high risk tolerance....

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