H.C. Wainwright raised its price target for electroCore (NASDAQ:ECOR) to $2.50 from $1.50, citing the FDA’s emergency use authorization of gammaCore, the company’s lead product, to treat COVID-19 patients. The stock closed at $1.83 on July 14.
The decision authorizes non-invasive vagus nerve stimulation (nVNS) via gammaCore to treat adult patients with known or suspected COVID-19 who are home bound and are experiencing exacerbation of asthma-related dyspnea and reduced airflow.
“We believe the decision by the FDA was based on positive results from the prior pilot studies evaluating the use of nVNS to treat asthma,” writes analyst Swayampakula Ramakanth. There were no treatment-related serious adverse events in the studies.
Mr. Ramakanth said the study results suggested that nVNS may provide therapeutic benefits to patients who are experiencing asthma-related breathing difficulty, which can be particularly debilitating in patients with COVID-19.
“We are encouraged by the FDA decision since it could potentially provide a basis for electroCore to pursue a label expansion into reactive airway disease, which was the first area of research for electroCore,” he added.