Maxim starts Synaptogenix at buy; PT $14


Maxim Group launched coverage of Synaptogenix (NASDAQ:SNPX) with a “buy” rating and price target of $14. The stock closed at $7.03 on April 11.

Synaptogenix, formerly Neurotrope, is continuing development of bryostatin for the treatment of moderately severe Alzheimer’s disease. The company also is developing bryostatin for fragile X syndrome, with an IND expected to be filed the second half of 2022. Other programs could follow as well, including for multiple sclerosis, writes analyst Jason McCarthy, Ph.D. 

Two prior Phase 2 studies missed, though much was learned around treatment duration, patient population(s), and background therapy with memantine, he added. 

Dr. McCarthy said that with new management that came on board in late 2020, NIH support, and a strengthened balance sheet, a new Phase 2b study was initiated and is currently ongoing. Data are expected in the fourth quarter of 2022. 

Dr. McCarthy said Synaptogenix shares have been in the “proverbial penalty box” since the last Phase 2 miss and the company currently has a market capitalization of around $50-million, with $34-million in cash on the balance sheet. “Based on prior data and [other] factors, the risk/reward profile is favorable, in our view,” he said.