Ladenburg starts Intec Pharma at buy; PT $13


Ladenburg Thalmann launched coverage of Intec Pharma (NASDAQ:NTEC) with a “buy” rating and $13 price target. The stock was quoted at $6 in early trading on March 1.

Intec is leveraging its proprietary drug delivery platform technology, the Accordion Pill (AP), to improve the safety and efficacy of established and novel therapeutics.

Analyst Michael Higgins writes that the company’s primary value driver is its Phase 3 candidate, AP-CD/LD, which delivers a combination of carbidopa and levodopa for advanced Parkinson’s disease (PD) patients.

In Phase 2 testing, he said AP-CD/LD produced more “on” time and less “off” time than any other oral PD therapy has shown in a pivotal trial. Also, while most of the PD pipeline candidates are being developed as acute, on-demand treatments for “off” time symptoms, “we believe AP-CD/LD’s chronic daily dosing could reduce the need for any on-demand therapy,” he added.

Citing recent acquisitions in the Parkinson’s space, Mr. Higgins said investor attention could increase when Intec's pivotal ACCORDANCE trial completes enrollment, which is expected in the third quarter of 2018. The trial should be completed in mid-2019.