EDISON EQUITY RESEARCH - AWAITING INFLECTION IN ADASUVE VOLUMES
05 February 2015 - 1:03AM
InvestorsHub NewsWire
Alexza's investment case continues to rest on the commercial
prospects for Adasuve, a rapid-inhalation treatment for acute
agitation in adult schizophrenia or bipolar disorder patients.
Adasuve offers speed and dosing reliability advantages in treating
acute agitation. Although we have lengthened the sales ramp-up
timeline given the 9m14 revenue pace, our 20% peak market share
assumption remains unchanged. Given a slower sales ramp up than
expected, we expect Alexza will need to raise $20m in capital in
H215 to fund operations. Our new equity valuation of $3.67/share
(from $4.71 previously) does not reflect this funding gap or
requirement.
Alexza Pharmaceuticals is a US-based company developing products
for acute CNS disorders using its proprietary Staccato rapid
inhalation drug delivery system. Lead product Adasuve is approved
in the US and EU for acute treatment of agitation in patients with
schizophrenia or bipolar I disorder.
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