Oppenheimer Thinks KemPharm’s Stock is Going to Recover

By Carrie Williams

In a report released yesterday, Derek Archila from Oppenheimer reiterated a Buy rating on KemPharm (NASDAQ: KMPH), with a price target of $13. The company’s shares closed yesterday at $3.55, close to its 52-week low of $2.90.

Archila commented:

“KMPH reported 4Q16 financial results and provided a business update. There was not much new in terms of pipeline updates, though the company still expects to initiate its Phase 3 study for its lead asset KP415 (methylphenidate prodrug) by 2H17. Based on our discussion with mgmt, we expect the study to enroll ~90-120 patients and assuming typical recruitment timelines could allow for top-line results potentially in 1Q18. Additionally, the company expects top-line data for its Phase 3 for KP201/IR, its immediate-release prodrug formulation of hydrocodone, in late 2017.”

According to TipRanks.com, Archila is a 1-star analyst with an average return of -5.9% and a 23.1% success rate. Archila covers the Healthcare sector, focusing on stocks such as Zynerba Pharmaceuticals, Endo International, and Insys Therapeutics.

KemPharm has an analyst consensus of Strong Buy.

Based on KemPharm’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $0 and GAAP net loss of $13.41 million. In comparison, last year the company earned revenue of $0 and had a GAAP net loss of $9.2 million.

Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of KMPH in relation to earlier this year.

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KemPharm, Inc. is a clinical-stage pharmaceutical company, which engages in the discovery and development of proprietary prodrugs. Its products include KP201/APAP, KP511/ER, KP606/ER, KP415 and KP303 which are used for treatment of deficit/hyperactivity disorder, pain and cardiovascular disease. The company was founded by Christal M. M. Mickle and Travis C. Mickle on October 30, 2006 and is headquartered in Coralville, IA.