Mackie ups Acerus Pharma PT to 50 cents from 40 cents

Mackie Research raised its price target for Acerus Pharmaceuticals (TSX:ASP, OTCQB:ASPCF) to 50 cents from 40 cents, reflecting an amended agreement with Aytu Biosciences (NASDAQ:AYTU) that would move their partnership to a U.S. co-promotion arrangement from an out-license model for Natesto, a nasal gel formulation of testosterone. The stock closed at 14 cents on July 30.

“We are highly increasing our Natesto U.S. sales estimates as we believe Acerus’ co-promotion plan would significantly increase the number of prescribing doctors,” writes analyst Andre Uddin.

Under the new accord, Acerus would build a sales force of 25 reps initially to target specialists while Aytu would be focused on primary care physicians. Acerus has engaged Syneos Health, a contract commercial organization, to build its sales team.

“We believe this transformative deal would create significant critical mass for Acerus; enable Acerus to lead the commercialization of Natesto in the U.S. – the company has been highly successful in Canada; grow the U.S. market by targeting high prescribing specialists, providing Acerus with strong revenue growth; strengthen Acerus’ financial profile – should turn the company profitable in 2021; help Acerus build a U.S. platform, facilitating future business development transactions,” Mr. Uddin added.