Eiger Biopharmaceuticals’ (EIGR) Hepatitis D Program is On Track, Analyst is Keeping a Buy Rating

By Carrie Williams

Eiger Biopharmaceuticals Inc.’s (EIGR) Hepatitis D program on track, Oppenheimer maintain BuyWall-Street analyst Jay Olson from Oppenheimer reiterated his Buy rating today, with $34 price target on the clinical-stage biopharmaceutical company Eiger Biopharmaceuticals Inc. (NASDAQ: EIGR). The price target being an upside of 176.42% from the stock’s yesterday’s close of $12.30 a share. The shares of the company opened today at $12.15, close to its 50-day SMA of $12.71.

The brokerage firm recently had a meeting with Eiger’s CEO David Cory concerning the update on the development and regulatory plans for hepatitis D program and expressed satisfaction regarding the way things are shaping up for EIGR. The company’s leading drug candidates include T Sarasar (lonafarnib) for hepatitis delta virus (HDV), exendin (9-39) for severe hypoglycemia, and Bestatin (ubenimex) for pulmonary arterial hypertension (PAH).

The company is currently conducting the Phase II clinical trials, LOnafarnib With and without Ritonavir (LOWR), HDV-2, LOWR HDV-3, and LOWR HDV-4 in its diversified orphan drug portfolio. Olson explained that the interim data from LOWR-2, 3 & 4 at AASLD looked promising. The analyst believes that EIGR has the capability to deliver the first FDA-approved treatment for hepatitis D in 2020 with the potential for curative and/or chronic treatment options. Olson also explained their expectation regarding the valuation, approval, and sales of various drugs:

“We value Sarasar/Interferon lambda at $14/share, assuming a 28% probability of approval in 2020 and $548M in peak sales in 2025; exendin in hyperinsulinemic hypoglycemia at $6/share, assuming a 36% probability of approval in 2019 and peak annual sales of $185M in 2024; Bestatin in PAH at $5/share, assuming a 10% probability of approval in 2021 and peak annual sales of $438M in 2026; Bestatin in lymphedema at $4/share, assuming a 10% probability of approval in 2020 and peak annual sales of $331M in 2025; and $5/share of net cash.”

For now, the analysts and investors alike are keenly looking forward to the upcoming events like the report data from Phase 2 MAD study of subcutaneous exendin (9-39) in RYGB patients (expected on December 9), as well as EOP2 meeting with FDA to discuss registration pathway in HDV in mid-2017. In addition, other catalysts in 2017 include the follow-up data from the LOWR program in HDV at EASL, report top-line data from ULTRA and LIBERTY trials, and top-line data from the IFN-lambda monotherapy study in HDV.

If more than one asset of Eiger gets FDA approval, the stock is expected to surge upwards in the near future. Any strategic M&As in the orphan drug space is also expected to boost the share prices of EIGR.

According to analysts’ recommendations from the past three months of EIGR, the overall rating consensus on the stock is a Strong Buy. The analysts have an average price target of $32.33, based on data by TipRanks.com, representing an upside of 161.78% from its last close.