HCW starts Citius Pharma at buy; PT $11

Buy-607494468 (1).jpg

H.C. Wainwright initiated coverage of Citius Pharmaceuticals (NASDAQ:CTXR) with a “buy” rating and price target of $11. The stock finished at $2.40 on May 22.

The company’s antibiotic lock therapy drug combination, Mino-Lok, is enrolling 700 patients in a single Phase 3 trial via the 505(b)(2) pathway program, which should only require one trial for approval, writes analyst Jason Kolbert, to demonstrate that the drug can salvage infected central venous catheters (CVCs) versus having to remove them.

He expects the trial can be fully enrolled by the fourth quarter of 2019, with data shortly after the last patient is treated. “This could put Mino-Lok in the market by 2020,” he added. The trial is scheduled for an interim look at 50%, which could happen by the first quarter of 2019 and 75% by the third quarter.

“We evaluate the market opportunity for Mino-Lok in both the short-term and long-term CVC markets based on the known number of CVC's and infection rates and determine that there are upwards of 250,000 CVCs or a $500-million-plus opportunity for Mino-Lok,” Mr. Kolbert said.