Ladenburg starts Scynexis at buy; PT $9

Ladenburg Thalmann launched coverage of Scynexis (NASDAQ:SCYX) with a “buy” rating and price target of $9. The stock finished at $1.59 on May 23.

Scynexis is focused on developing a first-in-class antifungal, SCY-078, available in both oral and IV formulations. “SCY-078 represents the first novel antifungal class in over 20 years,” writes analyst Michael Higgins.

He said the compound targets the same fungal cell wall enzyme as echinocandins but binds a different region and is molecularly distinct, making it orally bioavailable and unaffected by the resistance mechanisms that are increasingly limiting echinocandins and other antifungals.

In addition, Mr. Higgins said SCY-078 has low drug-drug interaction risk, no cardiac toxicity and causes mainly mild/moderate GI adverse events, which is a significantly better profile than azoles and polyenes.

“SCY-078 is the most advanced antifungal in development today, with Phase 2b results against fluconazole (Diflucan) in one-to-two months, ahead of pivotal, placebo-controlled vulvovaginal candidiasis studies to start around the end of 2018,” he added.


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