AEterna Zentaris Inc. (NASDAQ: AEZS) is having an overwhelmingly strong day in the market today, and for good reason. Not only has the FDA accepted a New Drug Application from the company, it is also the center of a key price target raise. All of this is leading to excitement among investors, causing gains in the stock and prompting our partners at Trade Ideas to alert us to the gains. At the moment (9:34), AEZS is trading at $2.81 per share after a gain of $0.47 per share (20.09%) thus far today.
AEZS Receives A Nod From The FDA
As mentioned above, AEterna Zentaris is having an incredibly strong day in the market today after the company received a favorable ruling from the United States Food and Drug Administration. News broke late yesterday that the FDA has accepted the company’s New Drug Application for Macrilen. The decision with regard to whether or not the drug will be approved will likely be made by the PDUFA date of December 30th. In a statement, David Didd, CEO at AEZS, had the following to offer:
“We remain confident that the FDA will approve our NDA and, therefore, we are moving forward with our preparations to launch the product in the first quarter of 2018.”
Maxim Group Upgrade
As if the FDA news wasn’t good enough, AEZS also received great news from Maxim Group. The analyst firm increased the price target on the stock from $2.00 per share to $4.00 per share, maintaining their buy rating.
The FDA news was a big part of this upgrade. If Macrilen is approved for growth hormone deficiency in adults, the stock could see some incredible action, as the treatment will provide increased value. The analyst points out that the only test used for AGHD is an insulin tolerance test, but is very difficult to perform and comes with significant risks to the patient. However, Macrilen is a safer test and can be repeated with accuracy multiple times. As a result, the analyst believes that “Macrilen could become the new standard for addressing AGHD and rapidly adopted by physicians.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on AEZS. In particular, we’re interested in following the NDA to see of Macrilen is indeed approved. If so, it could become the goose that lays the golden egg for the company and its shareholders. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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