FBR Capital Reiterates Outperform on Evoke Pharma (EVOK) as Phase III Readout Overshadows 3Q Report

November 15, 2016 4:45 PM EST
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Price: $2.28 -0.87%

Rating Summary:
    6 Buy, 2 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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FBR Capital reiterated an Outperform rating and $9.00 price target on Evoke Pharma (NASDAQ: EVOK) following the company's 3Q earnings report. However, the company's report was largely overshadowed by Evoke Pharma’s analysis of the top-line readout of a Phase III study with Gimoti. Treatment with Gimoti resulted in a statistically significant benefit in results from 28 of the 41 study sites, strongly pointing to a potential systematic imbalance in each group. The results remain perplexing as an initial look showed no systematic issues could be identified in the trial that could lead to the imbalance.

Analyst Vernon Bernardino commented, "With investors focused on the completion of Evoke Pharma’s analysis of the top-line readout of Phase III study with Gimoti (formerly referred to as EVK-001) in women with symptoms associated with diabetic gastroparesis, there was little fanfare in Evoke's 3Q16 financial results. As a reminder, the company announced in July 2016 that the primary endpoint measure was not met in the pivotal Phase III trial with Gimoti, a nasal spray formulation of metoclopramide [MCP]. The result was unexpected, as marketed oral forms of MCP have been used for 35 years as a treatment for diabetic gastroparesis. A preliminary review showed results were not consistent across the study sites. We continue to await the results of Evoke’s detailed analysis as they would inform what next steps Evoke will take to gain Gimoti’s approval. We continue to look for detailed results to be a positive catalyst in the next one to three months and reiterate our Outperform rating."

For an analyst ratings summary and ratings history on Evoke Pharma click here. For more ratings news on Evoke Pharma click here.

Shares of Evoke Pharma closed at $1.65 yesterday.

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