Aytu Bioscience (AYTU) stock closed 17% higher on Thursday, giving back a portion of its daily high that traded more than 31% higher. Volume was strong for the stock, with shares trading hands at over 3X average trading volume.
CNA Finance’s Chief Research Analyst, Kenny Soulstring, provided research coverage for AYTU on Wednesday and expected to see AYTU capitalize from several on-market product opportunities that include revenue from Natesto, ProstaScint, Fiera, and MiOXSYS.
Soulstring sees’s significant value enhancing opportunity from Natesto in the near term, as Natesto is the only testosterone replacement therapy on the market that is not required to have an FDA mandated Black Box Warning. Natesto has been proven safe and effective in its clinical trials and is the only FDA-approved, nasally administered therapy on the market. Sales of the product have gained strong momentum during the previous six months with sales up by over 20% between April and May and compounded an additional 20% in May and June of 2017. Natesto is addressing a multi-billion dollar market opportunity and AYTU is building its sales-force to exploit the potential of the therapy.
Beyond Natesto, Soulstring believes that each of the other three on-market treatments delivers equally impressive opportunity. ProstaScint, its prostate cancer screening agent, is focused on the over $2.5 billion prostate cancer market. Fiera, its female pre-intimacy device to address female sexual dysfunction, is targeting the under-served 53 million women in the U.S. market alone. And, MiOXSYS, AYTU’s male infertility treatment, is looking to capitalize on the expected $4.7 billion dollar market opportunity projected by 2025.
AYTU Has Multiple Shots On Goal
Not only does Soulstring believe that AYTU is in a strong position to capitalize from each of its products and therapies, he notes that because each of the products is already commercially available on a global scale that much of the regulatory risk is already behind the company.
While MiOXSYS is progressing through the 510K approval pathway for marketing in the United States, each of the other drugs has already received either FDA-approval or a CE marking designation.
Combined, AYTU is targeting a potential market of more than $10 billion with products that have been clinically proven to be safe, effective, and even best-in-class when compared to other marketed treatments and FDA-approved therapies.
Soulstring stated, “While AYTU’s share price may be depressed because of recently announced plans to reverse split the stock, the inherent value of the pipeline is well beyond the current market cap of the company. In fact, any of the product candidates already on-market is deserving of a multiple far higher than the current AYTU share price, based on addressable market and regulatory clearance.”
Soulstring believes that investors have a short window of opportunity at these price levels and that the next conference call has the potential to deliver news that can propel the share price significantly higher than current levels.
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