Aegis Affirms Ampio Pharma (AMPE) at 'Buy'; Says 'Significantly Undervalued' as Optina Trial Progresses

Aegis Capital affirms Ampio Pharma (Nasdaq: AMPE) at Buy with a price target of $16 following news that the Optina Phase 2b OptimEyes enrollment has closed.

Analyst Raghuram Selvaraju commented, Top-line data from the OptimEyes trial is now expected before the end of 2014, and will be presented to the FDA once received for further guidance on the clinical path forward for Optina. Positive data from the OptimEyes study would, in our view, constitute significant validation and give Ampio a three-for-three track record with its clinical-stage candidates, namely, Ampion, Zertane, and Optina. We view Ampio as significantly undervalued at this juncture. Given the approaching clinical data catalysts of top-line results from the Phase 3 STEP trial of Ampion in knee osteoarthrtisis and the Phase 2b trial of Optina in diabetic macular edema (DME), we believe the shares could appreciate substantially over the remainder of 2014 and beyond.

Selvaraju also commented on one notable, near-term catalyst: We note that Ampio is slated to report data within the coming weeks on Ampion in the confirmatory Phase 3 STEP trial. Given the fact that the earlier SPRING study showed robust efficacy and the ability of Ampion to provide long-term benefit in knee osteoarthritis, our expectations are high for the STEP study to confirm the efficacy of the drug and position Ampio to file a Biologics License Application (BLA) next year for approval of Ampion.

For an analyst ratings summary and ratings history on Ampio Pharmaceuticals click here. For more ratings news on Ampio Pharmaceuticals click here.

Ampio Pharmaceuticals closed at $7.44 yesterday.

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