IMPL - Impel cut to Neutral at Wedbush on sales outlook for migraine therapy

Wedbush downgraded Impel Pharmaceuticals ( NASDAQ: IMPL ) to Neutral from Outperform on Tuesday, noting uncertain commercial prospects for Trudhesa, an FDA-approved therapy for migraine in adults.

The analyst Laura Chico argues that the uptake for Trudhesa continues to lag even as the nasal spray remains a differentiated therapy in the migraine space with a unique profile.

Warning that the company will likely miss 2022 prescription guidance and net pricing improvements for Trudhesa will take longer than expected, the analyst lowers the revenue estimates for the treatment.

The planned expansion to field force will improve the uptake but will pressure the cash runway, Chico noted, as she slashed the price target on the stock to $5 from $24 per share.

“The commercial inflection could arrive sooner than anticipated, or the company could be acquired,” the analyst wrote, adding that until then, the firm moves to the sidelines.

The downgrade comes after Impel ( IMPL ) posted a sizable miss in its Q3 2022 financials on Monday.

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