Thursday, July 24, 2014

Roth starts Apricus Biosciences at buy

June 6, 2012 by · Leave a Comment 

Roth Capital Partners has initiated coverage of Apricus Biosciences (NASDAQ:APRI) with a “buy” rating and 12-month price target of $6, citing the advancement of the company’s pipeline towards product launch.

Apricus is a drug delivery company with a sexual health pipeline, among other areas, and a commercial operation with supportive oncology care products.

Analyst Scott Henry writes that key investment drivers to his positive investment thesis include Vitaros, which could be a faster and safer Viagra alternative; Femprox, which offers high risk/high reward as a potential female Viagra; and an oncology care franchise, which could form a base commercial business.

“The impetus for our buy rating on Apricus shares is our belief that the value of these individual assets is worth considerably more than the current valuation,” he said. “Continued development over the coming 12-to-18 months could revalue the shares higher.” The stock closed at $2.49 on Tuesday.

Mr. Henry said Apricus recently acquired approved oncology supportive care assets that could be re-launched in the second half of 2012. “We believe that this could soon be a profitable business that could absorb overhead as the pipeline matures.”

The company also has multiple other pipeline assets that it is attempting to monetize without significant future investment. “We view this as upside to our current valuation,” he added.

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