Analyst Jason McCarthy from Maxim Group maintained a Buy rating on Iterum Therapeutics and decreased the price target to $2.00 from $5.00.
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Jason McCarthy has given his Buy rating due to a combination of factors influencing Iterum Therapeutics’ potential growth. Despite the initial slow uptake of ORLYNVAH, Iterum’s newly launched oral penem for urinary tract infections, McCarthy sees significant long-term value. The drug’s unique position as the only oral penem available in the US is expected to drive interest and adoption among healthcare providers, particularly in infectious disease and general practice circles.
While the company’s current financials show a net loss and limited revenue, McCarthy anticipates that as ORLYNVAH gains more payer coverage and formulary placements, revenue will gradually increase. The expected expansion of coverage and the strategic partnerships with Eversana and Alto Specialty Pharma to enhance sales and operations are seen as pivotal in building market traction. Despite lowering the price target due to commercial risks and capital constraints, McCarthy maintains a Buy rating, confident in the drug’s potential to establish a strong foothold in the market over time.