Today’s Research Reports on Stocks to Watch: Galmed Pharmaceuticals and Zogenix
An analyst at Cantor Fitzgerald thinking that Galmed Pharmaceuticals is undervalued in the NASH space had traders cheering on Thursday, sending shares higher more than 20%. Zogenix also saw big gains after announcing positive results from its anti-seizure drug study.
RDI Initiates Coverage on:
Galmed Pharmaceuticals Ltd.
Galmed Pharmaceuticals Ltd. shares closed up 21.04% on nearly 4.2 million shares traded on Thursday. The gains came after Cantor Fitzgerald initiated coverage on the stock with an “overweight” rating as well as a price target of $59, which represents potential upside of over 450%. According to analyst Elemer Piros of the firm, Galmed could be a leader in the space of nonalcoholic steatohepatitis (NASH). The analyst wrote in a note to investors that Galmed is developing Aramchol, a novel, once-daily, oral therapy to treat liver diseases using fattyacid/bile-acid conjugates. Piros believes that by the fourth quarter of 2019, only three meaningful non-alcoholic steatohepatitis pivotal programs will be in development: Allergan’s (AGN) cenicriviroc, Madrigal Pharmaceuticals’ (MDGL) MGL-3196, and Galmed’s Aramchol. Of the three drugs, Galmed’s has the highest likelihood of achieving improvement on NASH resolution without worsening of fibrosis, and improvement in fibrosis score without worsening of NASH, according to the analyst.
Access RDI’s Galmed Pharmaceuticals Ltd. Research Report at:
Zogenix, Inc. shares closed up nearly 21% on skyrocket trading volume compared to usual on Thursday. The stock traded about 7.8 million shares compared to an average trading volume of a little under 550,000 shares. Zogenix also hit a brand new high of $58.30. The big moves were the result of the company revealing positive results on its anti-seizure drug. The drug was proven to be effective in its latest clinical trial. Zogenix reported positive top-line results from its second confirmatory Phase 3 study (Study 1504) for its investigational drug, ZX008 (low-dose fenfluramine hydrochloride), for the treatment of children and young adults with Dravet syndrome. The results showed that the drug successfully met the primary endpoint of reducing convulsive seizure frequency and all key secondary endpoints. According to the press release, ZX008 demonstrated at a dose of 0.5 mg/kg/day (maximum 20 mg/day), that it is superior to placebo when added to a stiripentol regimen. CEO of the company, Stephen J. Farr, Ph.D., commented, "I would like to extend my gratitude to the patients, families and investigators involved in Study 1504. Based on these highly compelling top-line results from both of our pivotal studies, we are now focused on submitting applications for regulatory approvals in the U.S. and Europe in the fourth quarter of 2018. We are excited about ZX008’s potential to have a major impact in the treatment of patients with Dravet syndrome and their families.”
Access RDI’s Zogenix, Inc. Research Report at:
Our Actionable Research on Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) and Zogenix, Inc. (NASDAQ: ZGNX) can be downloaded free of charge at Research Driven Investing.
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