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Milestone Pharmaceuticals maintains Buy rating from TD Cowen

EditorTanya Mishra
Published 21/10/2024, 14:58
MIST
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TD Cowen has reaffirmed a Buy rating with a $9.00 price target for Milestone Pharmaceuticals (NASDAQ: NASDAQ:MIST), maintaining a positive outlook on the company's prospects.

The endorsement follows a recent key opinion leader (KOL) event focused on the use of etripamil, the company's leading product candidate.

At the event, KOLs discussed etripamil's potential in the treatment of paroxysmal supraventricular tachycardia (pSVT) and atrial fibrillation (AFib). They pointed out the current patient dissatisfaction with existing treatments, which are often criticized for their slow onset of action and the inconvenience of emergency room visits.

The KOLs expressed confidence that etripamil could serve as a rapid-acting alternative, offering patients more treatment options and the possibility of improving their quality of life. Their discussions emphasized the drug's capability to address the unmet needs in the management of these cardiac conditions.

Milestone Pharmaceuticals has reached a significant regulatory milestone with the acceptance of the New Drug Application (NDA) for etripamil in the treatment of pSVT. The application has been scheduled for a review by the U.S. Food and Drug Administration (FDA), with a Prescription Drug User Fee Act (PDUFA) date set for March 2025.

In other recent news, Milestone Pharmaceuticals has had several significant developments. The company reported positive results from Phase 3 clinical trials of etripamil, a drug designed to treat paroxysmal supraventricular tachycardia (pSVT).

The trials showed a statistically significant greater percentage of patients achieving normal sinus rhythm within 30 minutes when treated with etripamil compared to those who received a placebo. Analyst firms H.C. Wainwright and TD Cowen have maintained their Buy ratings on Milestone, with TD Cowen anticipating that etripamil could reach peak sales of approximately $441 million by 2033.

Also, Milestone, in partnership with Ji Xing Pharmaceuticals, reported positive results from a Phase 3 trial in China for its etripamil nasal spray, resulting in an upfront payment of $15 million and a $5 million equity investment. In addition to these clinical developments, Milestone has appointed Stuart Duty and Andrew Saik as independent directors as part of a board refreshment strategy and entered into a Cooperation Agreement with Alta Fundamental Advisers LLC.

Lastly, H.C. Wainwright has reaffirmed its Buy rating on Milestone, highlighting the substantial growth potential of the company's therapeutic candidate, CARDAMYST (etripamil) nasal spray.

InvestingPro Insights

While TD Cowen maintains a positive outlook on Milestone Pharmaceuticals (NASDAQ:MIST), recent InvestingPro data provides additional context for investors. The company's market cap stands at $98.61 million, reflecting its current valuation in the biotech sector.

InvestingPro Tips highlight that MIST holds more cash than debt on its balance sheet, which could be crucial for funding its ongoing drug development efforts, including etripamil. This financial stability is particularly important given that the company is quickly burning through cash, a common scenario for biotech firms in the pre-approval stage.

Another InvestingPro Tip notes that analysts do not anticipate the company will be profitable this year, aligning with the typical trajectory of biotech companies awaiting FDA approval for their lead candidates. The stock's volatility, as indicated by another tip, reflects the uncertainty often associated with companies at this stage of drug development.

For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide deeper insights into MIST's financial health and market position.

The fair value based on analyst targets is $7.00, significantly higher than the current trading price, suggesting potential upside if etripamil receives FDA approval. However, investors should note the company's negative EBITDA of -$49.19 million over the last twelve months, underscoring the importance of the upcoming regulatory decision for MIST's financial future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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