Sabizabulin on "Short Path to FDA EMA", Will "Serve Critical Roles in the US and Abroad" - Veru (VERU) PT Hiked to $36 at Oppenheimer,

Oppenheimer analyst Leland Gershell raised the price target on Veru, Inc. (NASDAQ: VERU) to $36.00 (from $25.00) while maintaining a Outperform rating, following the company's report of "overwhelming" efficacy of sabizabulin, a COVID-19 oral drug candidate, in Phase 3 trials. Based on the results, The Independent Data Safety Monitoring Committee unanimously recommended that the Phase 3 study be halted early due to efficacy, and they further remarked that no safety concerns were identified.

Following up on the announcement, Oppenheimer analyst notes: "Yesterday's announcement that sabizabulin reduced deaths by 55% vs. placebo (p=0.0029) in hospitalized, moderate-severe COVID-19 patients puts this oral, once-daily, well-tolerated candidate on a short path to FDA Emergency Use Authorization and provides VERU with a substantial near-term revenue opportunity, in our view. Its demonstrated ability to improve outcomes in those at high risk of acute respiratory distress syndrome (ARDS) and death distinguishes sabizabulin from MRK's Lagevrio and PFE's Paxlovid, indicated for milder disease and for which respective US government procurement contracts worth $2.2B and $5.3B have been awarded. With the global pandemic showing little sign of abating and BARDA to be allocated $9.25B in additional COVID-19 funding, we believe sabizabulin will serve critical roles in the US and abroad. Reiterate Outperform, PT to $36."

Shares of VERU are gaining nearly 7% pre-market, after pulling out an over 180% gain on heavy volume on Monday.

By Vlad Schepkov

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