In a report released today, Yi Chen from H.C. Wainwright reiterated a Buy rating on Alimera (ALIM – Research Report), with a price target of $6.00.
Yi Chen has given his Buy rating due to a combination of factors related to Alimera Sciences’ recent performance and future prospects. The company’s impressive year-over-year revenue growth of 70% in the first quarter of 2024, along with a positive adjusted EBITDA, underscores its strong financial trajectory. Despite a slight miss on projected revenues, the substantial growth in U.S. and international revenues, coupled with a notable increase in global end-user demand, signals a robust market uptake of Alimera’s products. Furthermore, the reaffirmation of a $105 million revenue guidance for 2024, with an anticipated adjusted EBITDA margin exceeding 20%, provides a solid basis for Chen’s optimistic outlook on the company’s continued financial health.
Moreover, Chen’s recommendation is bolstered by Alimera’s promising clinical trials, which are expected to further enhance the company’s growth potential. The completion of enrollment for the Synchronicity Study and the potential positive interim data in the second half of 2024 could catalyze further investor interest. Additionally, the progress of the NEW DAY trial, which positions ILUVIEN as a baseline therapy for DME, could potentially shift the current standard of care if it demonstrates advantages over anti-VEGF injections. The anticipation of topline data from this large head-to-head comparison trial in the first half of 2025 may reveal ILUVIEN’s efficacy and reduce the need for supplemental injections, potentially increasing its adoption as a first-line therapy. These clinical milestones are key drivers in Chen’s positive assessment of Alimera’s stock.
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Alimera (ALIM) Company Description:
Alimera Sciences, Inc. engages in the research and development of biopharmaceutical products. It operates through the U.S. and International geographic segments. The firm focuses on the development of ophthalmic pharmaceuticals for the treatment of diabetic macular edema, wet and dry age-related macular degeneration, and retinal vein occlusion. Its products include ILUVIEN and NADPH Oxidase Inhibitors. The company was founded by Daniel C. Myers and David R. Holland on June 4, 2003 and is headquartered in Alpharetta, GA.
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