Cowen Starts Oyster Point Pharma (OYST) at Outperform, Street High $40 PT

Cowen analyst Ken Cacciatore initiates coverage on Oyster Point Pharma (NASDAQ: OYST) with a Outperform rating and a current Street High price target of $40.00.

The analyst comments "Oyster Point’s OC-01 (varenicline) is a selective nicotinic acetylcholine receptor (nAChR) agonist in development for the treatment of Dry Eye Disease (DED). OC-01 restores tear film homeostasis in DED with a novel, differentiated mechanism of action, via stimulation of the trigeminal parasympathetic pathway, and a unique intranasal delivery system. Importantly, based on the impressive efficacy and clean safety profile demonstrated in the Phase IIb ONSET-1 study, the FDA indicated that this trial could serve as one of two pivotal studies required for approval of OC-01. We believe this underscores the de-risked profile for OC-01, as all doses met on both signs (Schirmer’s Score at week 4) and symptoms (Eye Dryness Score at week 3 and 4). Results from the Phase III ONSET-2 trial are expected in mid-2020. If the ONSET-2 results are positive, we believe Oyster Point should be able to file OC-01’s NDA in H2:2020 with potential U.S. launch in late 2021. Given both the size of the DED market – as well as the limitations of the current treatment options – we believe OC-01 could ultimately reach $1B+."

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

Shares of Oyster Point Pharma closed at $14.89 yesterday.

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