HCW starts Antares Pharma at buy

H.C. Wainwright initiated coverage of Antares Pharma (NASDAQ:ATRS) with a “buy” rating and $5 price target. The stock closed at $3.01 on June 22.

Analyst Corey Davis writes that Antares has been a long leader in complex injector device development and made the leap to a fully integrated, commercial stage, drug-device specialty pharmaceutical company in 2014, with the launch of Otrexup, which has been disappointing.

“The stock has now rebounded strongly off multi-year lows in the last year under new leadership, but we believe there is still more upside as its diversified business strategy (a combo of partnered and in-house assets) finally matures in the near future,” he added.

Antares is a sum-of-the-parts story, Mr. Davis said, and “we believe several of those parts could come into clarity within months.”

He cited a potential A/B-rated generic EpiPen approval (partnered with TEVA) in the third quarter this year; Antares’ own Xyosted testosterone PDUFA date in October this year; partnered generic Byetta approval/launch; and a partnered Makena auto injector, with an October 2017 PDUFA.

“We project cash flow breakeven in the second half of 2018 and overall profitability in 2019,” he added.