Roth resumes coverage of Intec Pharma at buy; PT $8.50

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Roth Capital Partners resumed coverage of Intec Pharma (NASDAQ:NTEC) with a “buy” rating and a price target of $8.50, citing a favorable risk/reward for the company's Phase 3 Parkinson's treatment, AP-CD/LD (accordion pill - carbidopa/levodopa). The stock closed at $5.10 on Oct. 4.

Analyst Scott Henry writes that the key catalysts for the stock include pharmacokinetics (PK) data starting in the fourth quarter of 2018 and pivotal study data in mid-2019.

The pill/capsule market for carbidopa/levodopa combination products is substantial at some 3.8 million prescriptions/year. Target revenue of $600 a script equates to a target market of $2-billion-plus, he added.

“AP-CD/LD differs from current oral products due to its accordion pill technology that potentially smooths out the PK curve,” Mr. Henry said. “Reducing peaks and valleys should result in an improved side effect profile by reducing OFF time (valleys) and reducing dyskinesia (peaks).”

Stephen Kilmer