Lipocine’s Growth Potential Bolstered by TLANDO’s Canadian Market Entry and Phase 3 Trial for LPCN 1154

Analyst Yi Chen of H.C. Wainwright reiterated a Buy rating on Lipocine (LPCN – Research Report), retaining the price target of $8.00.

Yi Chen has given his Buy rating due to a combination of factors that highlight Lipocine’s potential for growth. The recent filing of a new drug submission for TLANDO in Canada by Verity Pharma, Lipocine’s commercial partner, is a significant development. TLANDO is the first oral testosterone replacement therapy approved by the FDA that does not require dose titration, and it could capture a substantial market share in Canada due to limited promotional activities for existing therapies. The potential regulatory approval and commercialization of TLANDO in Canada are expected to boost Lipocine’s revenue, supported by a licensing agreement that includes milestone payments and royalties.
Additionally, Lipocine’s initiation of a Phase 3 trial for LPCN 1154 in postpartum depression (PPD) represents another growth avenue. The trial is designed to demonstrate the efficacy of LPCN 1154, an oral formulation of brexanolone, which has shown bioequivalence with its intravenous counterpart. Positive results from this trial could pave the way for global registration, further enhancing Lipocine’s market potential. The valuation of Lipocine, based on discounted cash flow analysis, supports a price target of $8 per share, indicating a favorable risk-reward profile despite potential risks such as clinical trial failures and market competition.

Chen covers the Healthcare sector, focusing on stocks such as Vivani Medical, Opko Health, and RegenXBio. According to TipRanks, Chen has an average return of -10.5% and a 35.85% success rate on recommended stocks.