This rare disease-focused stock pipeline is underrated, says insurance-starting analyst

news7f11/18/2022

0 1 minute read

Cantor Fitzgerald coverage has begun on KemPharm Inc (NASDAQ: KMPH) with Overweight rating and rating $20 price target.
According to the analyst, KMPH’s products, processes and execution capabilities are undervalued. As a result, increased earnings estimate revisions and advances in the pipeline should drive the stock higher.
KMPH focuses on rare central nervous system and related disorders. KMPH’s AZSTARYS is the first and only approved methylphenidate-based drug containing serdexmethylphenidate (SDX) indicated for attention deficit hyperactivity disorder (ADHD).
The FDA approved the drug in March 2021.
The company has shifted focus to rare diseases with arimoclomol for NPC (Niemann-Pick disease) and KP1077 for a rare sleep disorder.
Cantor also believes that KP1077 can capture a large share of the idiopathic insomnia market based on its clinical distinction and combined use.
Total cash of $107.4 million is expected runway in 2026.
Price action: KMPH stock is trading up 2.85% at $4.52 on Thursday’s final check.