In a report released yesterday, Jason McCarthy from Maxim Group maintained a Buy rating on Avenue Therapeutics (ATXI – Research Report), with a price target of $0.75.
Jason McCarthy has given his Buy rating due to a combination of factors relating to Avenue Therapeutics’ prospects in the pharmaceutical market. One primary reason is the company’s development of IV tramadol, which has shown effectiveness in Phase 3 clinical trials for acute postoperative pain management. The drug’s differentiated mechanism of action, which includes both opioid agonist effects and inhibition of norepinephrine and serotonin re-uptake, positions it as a potentially safer alternative with reduced abuse potential compared to traditional opioids, which are often associated with higher risks of addiction and abuse.
Additionally, McCarthy sees value in the drug’s path forward to potential approval, following an agreement with the FDA to conduct a Phase 3 safety study addressing concerns around opioid stacking. The prospect of IV tramadol being classified as a Schedule IV substance, reflecting its lower abuse potential, further strengthens the case for a Buy rating. The company’s exploration of potential partnerships or other capital sources to support this development, alongside other promising assets in their pipeline, such as AJ201 and BAER-101 for CNS diseases, underscores the company’s strategic positioning and potential for growth in the specialty pharmaceutical sector.
According to TipRanks, McCarthy is an analyst with an average return of -23.0% and a 25.05% success rate. McCarthy covers the Healthcare sector, focusing on stocks such as Moleculin Biotech, Annovis Bio, and Acurx Pharmaceuticals.
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Avenue Therapeutics (ATXI) Company Description:
Avenue Therapeutics, Inc. engages in acquiring, licensing, developing, and commercializing products for use in the intensive care hospital setting. It focuses on the development of intravenous tramadol, which is intended for the treatment of moderate to moderately severe post-operative pain. The company was founded on February 9, 2015 and is headquartered in New York, NY.
Read More on ATXI:
- Avenue Therapeutics files to sell 33.08M shares of common stock for holders
- Avenue Therapeutics to Present at Sidoti January Micro-Cap Investor Conference
- Avenue Therapeutics Enters into Warrant Exercise Transactions for $5.0 Million in Proceeds
- Avenue Therapeutics enters warrant exercise transactions for $5M in procceeds
- Avenue Therapeutics Reaches Final Agreement with the U.S. FDA for the Phase 3 Safety Study for IV Tramadol
