Foamix Pharmaceuticals (FOMX) PT Doubled to $20 at Guggenheim
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Guggenheim analyst Louise Chen reiterated a Buy rating and doubled her price target on Foamix Pharmaceuticals (NASDAQ: FOMX) to $20.00 (from $10.00).
Chen commented, "The increase in our PT is driven by multiple expansion, as FOMX continues to make good progress on advancing its pipeline. We arrive at our new PT by using a DCF analysis. We still expect upward earnings revisions to drive shares higher, led by: 1) Peak sales of FMX101 reaching $500MM+, which would translate into $7.36 in EPS; 2) Sales from FOMX's other assets (FMX103, FMX102, FDX104); 3) Applying FOMX's technology outside of dermatology; and 4) Potential acquisition of commercial infrastructure to launch FMX101.
The analyst noted the following positives from the call and release that support their thesis:
1) Commenced Phase 3 trial for FMX101 in patients with moderate to severe acne. Patient enrollment is progressing as planned with topline results expected in 1H17;
2) Completed enrollment in Phase 2 FMX103 trial for rosacea, topline results expected before year end '16;
3) Plan to conduct a phototoxicity study later this year for FMX102, with results expected in '16;
4) Continue to develop FDX104 for acne-like rash in cancer patients;
5) Sales of Finacea Foam in the U.S. was up 10% sequentially from 1Q16; and,
6) Cash and equivalents of $90.9MM as of 6/30/16.
Shares of Foamix Pharmaceuticals closed at $8.14 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change
Related EntitiesEarnings, Definitive Agreement, Louise Chen, Guggenheim
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