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Medexus Pharmaceuticals shares rise after fiscal 3Q results earn repeat Speculative Buy rating, C$9 target from Mackie

Last updated: 20:47 02 Mar 2021 GMT, First published: 20:40 02 Mar 2021 GMT

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“MDP’s key drugs demonstrated solid unit demand growth,” the firm wrote in a note to clients

Medexus Pharmaceuticals Inc (CVE:MDX) (OTCQX:MEDXF) shares rose Tuesday after the company posted a record C$31.5 million revenue in its fiscal 3Q results, prompting analysts at Mackie Research Capital Corporation to reiterate its Speculative Buy rating and C$9 price target. 

“MDP’s key drugs demonstrated solid unit demand growth,” the firm wrote in a note to clients. “Additionally, the company recently renewed and expanded its distribution agreement for [its head lice treatment] NYDA, as well as has been in a full launch of [tumor imaging powder] Gleolan in Canada.”

Shares of Medexus climbed more than 6% to C$7.46 Tuesday afternoon. 

READ: Medexus Pharmaceuticals doubles fiscal 3Q revenue to record C$31.5M

The analysts also noted that in December, Medexus in-licensed from Ethypharm, a triamcinolone hexacetonide (TH) product for subacute and chronic inflammatory joint diseases. The company expects to file an abbreviated new drug application with the US Food and Drug Administration within the next two years, and the eventual product is forecasted to generate US peak sales of US$15 million per year.

In February, not included in the fiscal third quarter results ended December 31, Medexus then in-licensed Treosulfan, a conditioning agent for hematopoietic stem cell transplantation with Orphan Drug Designation, from Medac Pharma. 

Medca filed an New Drug Application (NDA) for Treosulfan in August 2020, and a PDUFA (prescription drug user fee amendments) date has been scheduled for August 2021, the firm wrote.

“A key competitor (busulfan) generated peak sales of US$126 million, prior to genericization,” analysts wrote. “Treosulfan is forecasted to generate US peak sales of US$20 million. We have incorporated the two products into our model.”

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel