Ladenburg cuts Scynexis PT to $6 from $10

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Ladenburg Thalmann lowered its price target for Scynexis (NASDAQ:SCNX) to $6 from $10, citing another delay in development of an IV formulation of ibrexafungerp. The stock closed at $1.39 on August 10.

“As successful as Scynexis’ oral formulation of ibrexafungerp has been, is how disappointing the IV formulation has been, as Scynexis’ quarterly update was marked by another delay in development of the IV formulation,” writes analyst Michael Higgins. 

“We continue to view the oral formulation as Scynexis’ main value driver (from 70% of our revenue projections to 100%) and do not expect any disruptions to oral ibrexafungerp’s vulvovaginal candidiasis plans, or to the upcoming expansion in invasive aspergillosis or refractory invasive fungal infection programs,” Mr. Higgins said.

Given that there is currently no defined timeline for an IV formulation to enter clinical trials, which previously was expected to start Phase 1 in the third quarter of 2018, “we have removed projected IV revenues from our models, lowering our price target from $10 to $6,” he added.

Melane LaBelle Sampson