Ensysce Biosciences, Inc. ENSC shares popped Monday following positive coverage from HC Wainwright. The firm put a price target on the stock far above current levels.
What To Know: HC Wainwright & Co analyst Raghuram Selvaraju initiated coverage on Ensysce Biosciences with a Buy rating and announced a $9 price target.
The analyst cited the innovation and optionality of the company’s platforms. He further noted that Ensysce Biosciences’ value proposition lies in its platforms, which include Trypsin-Activated Abuse Protection and Multi-Pill Abuse Resistant, which utilize next-generation ADFs differentiated from approved technologies and are less prone to abuse or misuse. They are intended to safeguard individuals against opioid abuse and overdoses.
In particular, TAAP-based prodrug, PF61, is used to address opioid abuse. It has shown a diminished risk of abuse through methods such as crushing, injecting, snorting, or chewing, while maintaining a comparable level of safety and effectiveness to the reference drug, OxyContin.
In terms of commercialization and partnering, the analyst proposes a target sales force of 100 to 120 specialists, with greater potential if PF614-MPAR is approved.
Total firm value was estimated at $70 million, meaning a price objective of $9 per share assuming approximately 7.5 million shares outstanding as of the end of the first quarter.
Stated risks included failure by the company to initiate Phase 2 development with PF614 and/or Phase 1 assessment of PF614-MPAR in a timely manner.
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ENSC Price Action: Shares of ENSC closed Monday up 31.1% at $2.36, according to Benzinga Pro.
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