Analysts Offer Insights on Healthcare Companies: CytomX Therapeutics Inc (NASDAQ: CTMX) and KemPharm (NASDAQ: KMPH)

By Austin Angelo

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on CytomX Therapeutics Inc (NASDAQ: CTMX) and KemPharm (NASDAQ: KMPH) with bullish sentiments.

CytomX Therapeutics Inc (NASDAQ: CTMX)

Cowen & Co. analyst Boris Peaker reiterated a Buy rating on CytomX Therapeutics Inc (NASDAQ: CTMX) today. The company’s shares opened today at $14.48.

Peaker said:

“CTMX announced that the first patient in CX-2009’s (CD166 PDC) Phase I trial has.”

According to TipRanks.com, Peaker is a 3-star analyst with an average return of 2.2% and a 43.0% success rate. Peaker covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Corvus Pharmaceuticals Inc, and Merrimack Pharmaceuticals.

CytomX Therapeutics Inc has an analyst consensus of Strong Buy, with a price target consensus of $24.50.

KemPharm (NASDAQ: KMPH)

In a report released today, Scott Henry from Roth Capital initiated coverage with a Buy rating on KemPharm (NASDAQ: KMPH) and a price target of $8. The company’s shares opened today at $3.60.

Henry wrote:

“We launch coverage of KemPharm, Inc with a Buy rating and an $8.00/share price target. The impetus for our Buy rating on KMPH shares is the potential for the company’s lead compound (KP415) to drive profitability as a next- generation treatment for attention deficit hyperactivity disorder (ADHD). KemPharm is an Iowa-based drug delivery company that is utilizing prodrugs to create potentially better ADHD and pain drugs. Key drivers to our investment thesis include: Driver #1 – KP415 has Vyvanse-like potential. KMPH’s lead compound is KP415, which could be an improved methylphenidate for the ADHD market. This could be similar to the way that Vyvanse replaced Adderall in the amphetamine side of the ADHD market. Notably, Shire (the marketer of Vyvanse) also holds the right of first refusal to market KP415. Driver #2 – KP415 appears approvable with advantages. The pharmacokinetic (PK) data appears to demonstrate the ability to get methylphenidate into the blood stream. Further, the “hook” appears to be a faster (and possibly longer) mechanism of action for KP415 relative to Concerta (perhaps peak concentration as soon as 2 hours, versus ~6 hours for Concerta).”

According to TipRanks.com, Henry is a 2-star analyst with an average return of 0.0% and a 40.8% success rate. Henry covers the Healthcare sector, focusing on stocks such as Acerus Pharmaceuticals Corporation, Synergy Pharmaceuticals Inc, and Avadel Pharmaceuticals plc.

KemPharm has an analyst consensus of Moderate Buy, with a price target consensus of $10.50.

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