Maxim starts TFF Pharma at buy; PT $12

Maxim Group launched coverage of TFF Pharmaceuticals (NASDAQ:TFFP) with a “buy” rating and $12 price target. The stock closed at $6.22 on July 7.

The company is using its thin film freezing (TFF) platform to develop two clinical candidates via the 505(b)2 pathway: TFF-VORI, an inhalable antifugal, and TFF-TAC, an inhalable immunosuppressant, writes analyst Jason McCarthy. 

TFF-VORI is in a Phase 1 study for invasive pulmonary aspergillosis. Initial data has demonstrated safety, with no signals of typical dose limiting adverse events. He said additional data are expected in the second half of 2020 and a Phase 2 pivotal trial is expected to follow, “positioning TFF-VORI for approval in 2022.” 

TFF-TAC also is in a Phase 1 study for lung transplant, with data expected in the second half of 2020, and a Phase 2 pivotal trial expected to follow, “positioning TFF-TAC for approval in 2022.” 

Mr. McCarthy said the TFF platform has applications beyond the initial candidates. “Eighteen target compounds have been identified, which could represent an attractive lifecycle management for Big Pharma.” 

The company also has a vaccine platform that should eliminate the need for cold-chain transportation and storage, which is responsible for 80% of vaccine costs, and reduce waste in the vaccine supply, he added.