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Wainwright maintains Buy rating on Milestone Pharma stock

EditorTanya Mishra
Published 10/14/2024, 07:57 AM
MIST
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H.C. Wainwright has reaffirmed its Buy rating and $25.00 price target for Milestone Pharmaceuticals (NASDAQ: NASDAQ:MIST), following a recent educational event hosted by the company.

The event, held on October 8, featured discussions by key opinion leaders in cardiology about managing paroxysmal supraventricular tachycardia (PSVT) and studying atrial fibrillation with rapid ventricular rate (AFib-RVR) in a community setting.

The focus of the event was on CARDAMYST (etripamil) nasal spray, Milestone's leading therapeutic candidate. This fast-acting calcium channel blocker is designed for patients to self-administer during acute symptomatic episodes of PSVT, without the need for medical supervision.

The discussion highlighted the potential for CARDAMYST to serve as a first-line treatment for acute PSVT episodes and its possible future application for AFib-RVR in an at-home setting.

The analysts at H.C. Wainwright noted the commercial opportunity for CARDAMYST, emphasizing its potential as a significant advancement in the treatment landscape. They pointed out that the PSVT market dynamics could lead to early success for the drug, with considerable room for growth, particularly if it is later approved for AFib-RVR, a use they believe is currently undervalued by investors.

In other recent news, Milestone Pharmaceuticals has been making significant strides. The company reported positive results from the Phase 3 clinical trials of etripamil, a drug designed to treat paroxysmal supraventricular tachycardia (pSVT).

The trials demonstrated a statistically significant greater percentage of patients achieving normal sinus rhythm within 30 minutes when treated with etripamil compared to those who received a placebo. Analyst firm TD Cowen maintains its Buy rating on Milestone, anticipating that etripamil could reach peak sales of approximately $441 million by 2033.

In partnership with Ji Xing Pharmaceuticals, Milestone has also reported positive results from a Phase 3 trial in China for its etripamil nasal spray. Milestone granted Ji Xing an exclusive license to develop and potentially commercialize etripamil in Greater China, resulting in an upfront payment of $15 million and a $5 million equity investment.

In addition to these clinical developments, Milestone has appointed Stuart Duty and Andrew Saik as independent directors as part of a board refreshment strategy. The company has also entered into a Cooperation Agreement with Alta Fundamental Advisers LLC. Lastly, H.C. Wainwright has reaffirmed its Buy rating on Milestone Pharmaceuticals, highlighting the substantial growth potential of the company's therapeutic candidate, CARDAMYST (etripamil) nasal spray.

InvestingPro Insights

While H.C. Wainwright maintains a bullish outlook on Milestone Pharmaceuticals, it's crucial to consider the company's current financial position. According to InvestingPro data, Milestone has a market capitalization of $95.96 million, significantly below the potential peak annual revenues projected for CARDAMYST. This discrepancy highlights the market's cautious stance on the company's prospects.

InvestingPro Tips reveal that Milestone is currently not profitable and is quickly burning through cash, which aligns with the company's focus on developing CARDAMYST. The stock's volatility, as noted by another tip, reflects the uncertainty surrounding the drug's approval and market success.

Despite these challenges, Milestone holds more cash than debt on its balance sheet, providing some financial flexibility as it pursues CARDAMYST's development and potential commercialization. This cash position could be crucial in supporting the company's operations until it potentially reaches profitability.

Investors should note that there are 5 additional InvestingPro Tips available for Milestone Pharmaceuticals, offering further insights into the company's financial health and market position. These tips could provide valuable context for evaluating the stock alongside H.C. Wainwright's optimistic projections.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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