UPDATE: Canaccord Genuity Starts Alcobra Ltd. (ADHD) at Buy

(Updated - April 17, 2014 8:49 AM EDT)

Canaccord Genuity initiated coverage on Alcobra Ltd. (NASDAQ: ADHD) with a Buy rating and a price target of $24.00.

Analyst John Newman said, "We view Alcobra as a unique play on an undervalued and overlooked space, the non-stimulant ADHD market. We see upside based on expected positive Phase 3 data, strong market fundamentals, and a competitive advantage."

"We expect positive Phase 3 data based on MG01CI efficacy in the ADHD-PI subtype and a trial provision guaranteeing at least 100 patients will have subtype ADHD-PI," continued the analyst. "We estimate Alcobra’s non-stimulant drug could reach $800M in peak sales if unpartnered and could reach $1.5B in peak sales if partnered. The market currently has two competitive players, Intuniv and Strattera. Intuniv is only approved for pediatrics, and Strattera has experienced long-term decline since 2005. MG01CI has shown fewer side effects and much faster onset (hours vs. weeks) than Intuniv and Strattera. Despite Intuniv becoming a generic in December 2014, we view MG01CI as the market leader due to its safety, onset time, and efficacy among the ADHD-PI subtype."

For an analyst ratings summary and ratings history on Alcobra Ltd. click here. For more ratings news on Alcobra Ltd. click here.

Shares of Alcobra Ltd. closed at $14.63 yesterday.

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