UPDATE: Cowen Starts Foamix Pharmaceuticals (FOMX) at Buy

Cowen initiated coverage on Foamix Pharmaceuticals (NASDAQ: FOMX) with a Buy rating and a price target of $30.00. Analyst Ken Cacciatore thinks FMX101 will be successful in acne, and he anticipates minor contributions from FMX102 and FDX104.

"Foamix's lead clinical development candidate, FMX101, is a 4% foam formulation of minocycline, which has been stubbornly difficult – until now – to stabilize into a topical formulation. FMX101's lead indication is the reduction of inflammatory and non-inflammatory lesions in patients with moderate-to-severe acne. In a Phase II study, FMX101 demonstrated a reduction in inflammatory and non-inflammatory lesions greater than 70% at 12 weeks. These results are statistically significant compared to vehicle foam and suggest an improvement relative to all current topical and oral antibiotic acne treatments. Our consultants have indicated an exceedingly high level of enthusiasm for a topical formulation that could deliver equivalent efficacy while avoiding the systemic exposure of oral minocycline," said Cacciatore.

"Foamix is also developing FMX102, a 1% foam formulation of minocycline for the treatment of impetigo, a highly contagious skin infection. Thus far, FMX101 has demonstrated a clinical success rate greater than 80% after only 3 days of treatment and complete resolution of the infection after 7 days of treatment. The clinical findings for FMX102 suggest the potential to be the standard of care for the treatment of impetigo. Finally, FDX104, a foam-based version of doxycycline, is being evaluated for the treatment of EGFRI-induced rash. The orphan indication is currently managed with off-label oral antibiotics and has the potential to cause serious side effects or drug interations in this already immunocompromised patient population," he added.

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

Shares of Foamix Pharmaceuticals closed at $5.08 yesterday.

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