Arch Therapeutics Inc Receives a Buy from Roth Capital

By Austin Angelo

Roth Capital analyst Michael Higgins reiterated a Buy rating on Arch Therapeutics Inc (Other OTC: ARTH) today and set a price target of $3. The company’s shares opened today at $0.50.

Higgins wrote:

“We met this week with Arch’s CEO Terrence Norchi, M.D., and CFO Richard Davis to discuss AC5’s clinical and regulatory development, and timing of a commercial partnership. Notable changes to our estimates include FDA 510(k) and CE-mark approval decisions by Q1’18, and reduced development costs related to the internal surgical trials from $8-10 million to $3-5 million. While these updates extend its runway and advance potential revenues, we reiterate our price target which is derived from a comps valuation. Potential bidding war for a partnership with Arch on the horizon As Arch does not intend to build a sales force, we expect a partnership with another company in the hemostat/sealant market within the next year.”

According to, Higgins is ranked 0 out of 5 stars with an average return of -15.4% and a 25.0% success rate. Higgins covers the Healthcare sector, focusing on stocks such as Sucampo Pharmaceuticals, Juniper Pharmaceuticals, and Zynerba Pharmaceuticals.

Arch Therapeutics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $3.

Based on Arch Therapeutics Inc’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $0 and GAAP net loss of $1.87 million. In comparison, last year the company earned revenue of $0 and had a GAAP net loss of $1.25 million.

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Arch Therapeutics, Inc. is a biotechnology company, which engages in developing an innovative, elegant, and superior approach to the rapid cessation of bleeding and control of fluid leakage during surgery and trauma care. Its product candidate surgical hemostatic device is designed to achieve hemostasis in minimally invasive and open surgical procedures. The company was founded by Rutledge Ellis-Behnke and Terrence W. Norchi on September 16, 2009 and is headquartered in Framingham, MA.