UPDATE: Canaccord Genuity Starts Aldeyra Therapeutics (ALDX) at Buy

Canaccord Genuity initiated coverage on Aldeyra Therapeutics (NASDAQ: ALDX) with a Buy rating and a price target of $16. Analyst Corey Davis is positive on the company's lead drug, NS2, and sees catalysts in the second half of 2015.

"Aldeyra is developing an unique aldehyde-trapping molecule, NS2, to treat two orphan indications with significant unmet need: Sjögren-Larsson Syndrome (SLS) and noninfectious anterior uveitis (AU). Since both diseases are associated with disruptions in aldehyde metabolism, decreasing the aldehyde load should mitigate the underlying inflammation. NS2 is currently in Ph2 for SLS and AU, with results anticipated at the end of 2015; since no human efficacy data is available to date, readout of the these trials would be huge catalysts for the stock," said Daivs.

"We assume that it will successfully complete Phase 2 by 2015 in two orphan indications – Sjögren-Larsson Syndrome (SLS) and noninfectious anterior uveitis (AU), and receive approval in 2018," continued the analyst.

Davis added, "We like the stock for several reasons ... Straightforward science, versatile molecule ... Free aldehyde is the root cause of SLS; aldehyde-related oxidative stress is linked to noninfectious anterior uveitis ... Current treatments for both SLS and AU are inadequate ... NS2 has excellent preclinical data ... There are at least two potentially stock moving catalysts in 2H2015."

For an analyst ratings summary and ratings history on Aldeyra Therapeutics click here. For more ratings news on Aldeyra Therapeutics click here.

Shares of Aldeyra Therapeutics closed at $7.76 yesterday.

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