In a report released yesterday, Naz Rahman from Maxim Group maintained a Buy rating on Petros Pharmaceuticals (PTPI – Research Report), with a price target of $4.00.
Naz Rahman has given his Buy rating due to a combination of factors including Petros Pharmaceuticals’ recent positive FDA feedback and the development of its over-the-counter (OTC) erectile dysfunction drug, Stendra. The company’s proprietary self-selection technology for Stendra has consistently shown promising results, and the FDA’s support indicates a clear path forward for the drug’s development and potential market entry. The expected finalization of the FDA’s Nonprescription Drug Product with an Additional Condition for Nonprescription Use (ACNU) pathway by April 2024 is set to provide a more defined regulatory framework, which Rahman believes will reduce development risks and offer more certainty regarding the costs and design of necessary studies.
Further bolstering the Buy rating, Rahman highlights the FDA’s positive response to both the product and Petros’ technology, including the company’s strategy to address safety concerns related to nitrate coadministration—a significant hurdle for OTC approval of PDE5 inhibitors like Stendra. The FDA’s agreement with Petros’ plans to submit and review its self-selection study in the second half of 2024 and the potential IND filing by the end of 2024 or early 2025 for a pivotal Actual Use Trial indicate a clear trajectory towards commercialization. Rahman’s valuation forecasts sales out to 2030, incorporating a risk adjustment and anticipating a successful product launch, further justifying the Buy recommendation.
According to TipRanks, Rahman is an analyst with an average return of -9.8% and a 29.00% success rate. Rahman covers the Healthcare sector, focusing on stocks such as Viking Therapeutics, Palisade Bio, and Vertex Pharmaceuticals.
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Petros Pharmaceuticals (PTPI) Company Description:
Petros Pharmaceuticals Inc is a men’s health pharmaceutical company. It focuses on identifying, developing, acquiring, and commercializing innovative therapeutics for men’s health issues including endothelial dysfunction, psychosexual and psychosocial ailments, peyronie’s disease, hormone health and substance use disorders.
