Brookline Capital Markets launched coverage of electroCore (NASDAQ:ECOR) with a “buy” rating and price target of $5. The stock closed at $1.57 on Oct. 22.
electroCore is a bioelectronic medicine company whose lead product, gammaCore, is a non-invasive vagus nerve stimulation therapy used to treat migraine headaches, providing pain relief in as fast as 15 minutes, writes analyst Sally Yanchus.
In July 2020, the FDA granted electroCore emergency use authorization for gammaCore to treat known or suspected COVID-19 patients who are experiencing exacerbation of asthma-related dyspnea and reduced airflow. Vagus nerve stimulation has been shown to improve reactive airway disease and lung function, Ms. Yanchus added.
She expects the company’s 2020 revenue to grow 26%, compared with 2019, even though electroCore’s sales force experienced restrictions in their physician outreach efforts.
“Based on an estimated prevalence of 36 million migraine and cluster headache patients in the U.S., and our estimate of the number of COVID-19 patients who use gammaCore, that translates into a potential market of $3.7-billion for gammaCore,” Ms. Yanchus said.
