BTIG starts Zosano Pharma at buy; PT $19


BTIG launched coverage of Zosano Pharma (NASDAQ:ZSAN) with a “buy” rating and 12-month price target of $19. The stock closed at $3.80 on June 27. 

Zosano is focused on the development of therapeutics using its ADAM intradermal microprojection delivery technology platform. 

Its lead program, M207, is a promising, rapid-acting ADAM-based form of zolmitriptan, which has completed a pivotal study with very positive results, writes analyst Robert Hazlett.

He said M207 demonstrated robust efficacy in the acute treatment of migraine that appears comparable to that of injectable triptans, and though not head-to- head, also appears much better than that seen with newer therapeutics in development, such as CGRPs and 5HT1Fs.

“We believe M207 can have a substantial role in difficult-to-treat, well-established migraine, and in those where nausea is a material concern,” he added. 

Zosano has now fully enrolled M207’s long-term safety study, its only remaining clinical work, Mr. Hazlett said, adding that a NDA filing of M207 is expected in the second half of 2019, with possible FDA approval in 2020. “We estimate its peak revenue in excess of $300-million,” he added. 

Stephen Kilmer