Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Nicox SA and increased the price target to €1.50 from €1.00.
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Ram Selvaraju has given his Buy rating due to a combination of factors, primarily driven by the positive outcomes from Nicox SA’s Denali trial for NCX 470, a treatment for glaucoma. The trial successfully met its primary endpoint, demonstrating the drug’s efficacy in lowering intraocular pressure (IOP) compared to the standard treatment, latanoprost. This success not only supports the filing of a New Drug Application (NDA) in the U.S. but also triggers a significant milestone payment from Nicox’s partner, Kowa, indicating strong financial backing and potential for future revenue streams.
Furthermore, the analyst highlights the strategic advantage of NCX 470’s rapid onset of action and its superior IOP-lowering capability, which positions it well for market penetration upon approval. The probability of the drug’s approval has been increased to 85%, reflecting confidence in its clinical and commercial prospects. Additionally, Nicox is poised to receive further milestone payments and royalties, enhancing its financial outlook. These factors collectively underpin the raised price target of €1.50 and the reiterated Buy rating, suggesting a promising growth trajectory for Nicox SA.
According to TipRanks, Selvaraju is a 5-star analyst with an average return of 23.5% and a 55.04% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Axsome Therapeutics, Bioxcel Therapeutics, and Cognition Therapeutics.