Analyst Stacy Ku of TD Cowen maintained a Buy rating on Verrica Pharmaceuticals, reducing the price target to $20.00.
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Stacy Ku has given his Buy rating due to a combination of factors, primarily focusing on the promising sales growth and strategic management initiatives at Verrica Pharmaceuticals. The company reported a significant quarter-over-quarter increase in sales of Ycanth, suggesting a rising demand for their product. This growth is supported by the management’s strategic focus on expanding into key territories with high molluscum prevalence and strong insurance coverage, which is expected to enhance access and drive further adoption.
Additionally, the management’s efforts to address commercial adoption hurdles and focus on practices treating high volumes of molluscum are seen as positive steps. The anticipated discontinuation of compounded cantharidin, coupled with the projected sales growth, aligns with the company’s strategy to capture market share. The analyst’s optimism is further bolstered by the enthusiastic feedback from key opinion leaders regarding Ycanth’s effectiveness compared to compounded cantharidin, which faces issues of accessibility and consistency. These factors contribute to the analyst’s confidence in the company’s potential for achieving its sales targets and justify the Buy rating.
Ku covers the Healthcare sector, focusing on stocks such as Centessa Pharmaceuticals, Verrica Pharmaceuticals, and Supernus Pharmaceuticals. According to TipRanks, Ku has an average return of 3.8% and a 61.39% success rate on recommended stocks.