JAZZ - Axsome draws 36% hike for price target at Cantor on prospects for Sunosi
Cantor Fitgerald raised its price target on commercial-stage biopharma Axsome Therapeutics ( NASDAQ: AXSM ) by as much as ~36% noting that the company’s management provided a much clearer view on sleep disorder therapy Sunosi at an investor event on Tuesday.
In March, Axsome ( AXSM ) agreed to acquire Sunosi from Jazz Pharmaceuticals ( JAZZ ). The dopamine and norepinephrine reuptake inhibitor is indicated for adults with excessive daytime sleepiness due to narcolepsy or obstructive sleep apnea.
“With the additional detail provided during the presentation, we are now comfortable placing an explicit value on Sunosi…” the analyst Charles C. Duncan wrote, reiterating the Overweight rating on the stock.
Noting that the upfront payment for the acquisition was lower than the 2021 revenue Jazz ( JAZZ ) recognized for the product, the analyst maintains that the agreement to buy Sunosi was favorable to Axsome ( AXSM ).
Citing expert opinion, Duncan adds: “Sunosi has the potential to become a mainstay as the first-line non-generic therapeutic for obstructive sleep apnea (OSA) and type-2 narcolepsy.” The price target raised to $64 from $47 per share indicates a premium of ~69% to the last close.
Wall Street stands strongly behind the prospects of Axsome ( AXSM ) with 13 Buy ratings and only two Hold or Sell ratings.
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Axsome draws 36% hike for price target at Cantor on prospects for Sunosi