UPDATE: Cowen Starts Ohr Pharmaceutical (OHRP) at Outperform

(Updated - March 2, 2015 1:20 PM EST)

Cowen initiated coverage on Ohr Pharmaceutical (NASDAQ: OHRP) with an Outperform rating and a price target of $25.00. Analyst Tyler Van Buren thinks OHR-102 success in wet AMD will create tremendous value.

"We assume a potential US OHR-102 approval and launch in early 2019 with a peak penetration of treated wet AMD patients eligible for anti-PDGF treatment just above 35% by year 7, which assumes other PDGF competition. This results in a peak US sales potential of $1B+," said Van Buren.

"Ex-US, we assume an early 2020 launch and an ultimate peak penetration of 25% by year 6-7 factoring in other PDGF competition. This results in a peak Ex-US sales potential of $750MM+. Providing a necessary high discount rate given the still early stage of development to these estimates yields an equity value of $800MM+ or $25 per fully-diluted share, which is the basis of our price target. If the final Phase II data are successful, our discount rate would correspondingly decrease resulting in a higher equity value. Worth noting, our valuation does not give any credit to OHR-102’s follow-on indications of RVO, PVR, and DME, or the Alcon-partnered sustained-release programs," he added.

For an analyst ratings summary and ratings history on Ohr Pharmaceutical click here. For more ratings news on Ohr Pharmaceutical click here.

Shares of Ohr Pharmaceutical closed at $7.69 yesterday.

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