KMPH - KemPharm wins Buy rating at Canaccord on CNS focus
- Canaccord Genuity has launched its coverage on KemPharm, Inc. ( NASDAQ: KMPH ), a developer of enhanced versions of existing medications, with a Buy rating noting its renewed-focused on rare diseases linked to the central nervous system (CNS).
- The analysts Sumant Kulkarni and Kyle Qian highlight the company’s recent acquisition of arimoclomol, an experimental therapy targeted at rare progressive neurodegenerative disease Niemann-Pick disease type C.
- The transaction, along with KMPH’s ongoing studies for KP1077 for idiopathic hypersomnia, “signal a well-crafted/ clear strategy to deepen its presence in central nervous system (CNS) focused rare diseases,” the analysts wrote.
- The firm, with a $20 per share target on KMPH, added that the company’s strategy to focus on rare CNS diseases is underappreciated and calls the deal for arimoclomol a “strategically and financially prudent” move with the potential for speedier cash flow generation.
- While KP1077 is poised to become a differentiated option for IH, where there is limited competition, the analysts also highlight the prospects for royalties from KMPH’s ADHD drug Azstarys and the company’s cash runway that extends beyond 2025.
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KemPharm wins Buy rating at Canaccord on CNS focus