|Bid||9.23 x 1200|
|Ask||9.20 x 1800|
|Day's Range||9.02 - 9.62|
|52 Week Range||1.94 - 22.08|
|Beta (5Y Monthly)||3.36|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Specialty pharmaceutical company KemPharm, Inc. amended its collaboration and licensing agreement with an affiliate of Gurnet Point Capital (GPC). The latter is a private equity firm with a focus on the life sciences and medical technology sectors. This agreement provides an exclusive worldwide license to develop and commercialize Kempharm’s product candidates that contain serdexmethylphenidate (SDX) and d-methylphenidate (d-MPH), including AZSTARYS. AZSTARYS received approval from the FDA on March 2 for treating attention deficit hyperactivity disorder (ADHD) in patients who are six years or older. KemPharm (KMPH) President and CEO, Travis C. Mickle, Ph.D., said, “The last few weeks since AZSTARYS was approved have been an exciting and busy time as we have worked with our partners at GPC and Corium to re-evaluate the commercial potential of AZSTARYS based on the final approved label, and negotiated adjustments to the economics of our license agreement to optimize investment in the commercial launch and, ultimately, long term value creation.” (See KemPharm stock analysis on TipRanks) Under the amendment, KemPharm may receive future regulatory and sales milestone payments of up to $590 million for AZSTARYS along with tiered royalty payments on a per-product basis. These royalty rates on net product sales range from a single-digit percentage to mid-twenties for U.S. sales. For each country outside the U.S these range between a percentage in low to mid-single digits of net sales. Under the original license agreement, KemPharm was eligible to receive up to $468 million in regulatory and sales milestones. GPC’s affiliate, Corium, Inc. is commercializing AZSTARYS and plans to make the drug available in the U.S. market in 2H 2021. On April 9, H. C. Wainwright analyst Oren Livnat reiterated a Hold rating on the stock and lowered its price target to $10 from $12. Commenting on the amended AZSTARYS agreement, Livnat said, “The amended agreement in our view, confirms our reservations. We believe there was a disagreement, and rather than arbitrate and potentially delay a launch, a compromise was struck.” The other analyst covering the stock, Roth Capital’s Jonathan Aschoff has a Buy rating on the stock with a $28 price target (174.8% upside potential). The two ratings add up to a Moderate Buy consensus rating alongside an average analyst price target of $19 (86.5% upside potential). Shares have gained about 169% over the past year. Related News: Best Buy Launches $200 Per Year Membership Program Okta Reaffirms Financial Outlook, Launches New Products On Investor Day Shell Expects To Take A $200M Hit From Texas Winter Storm More recent articles from Smarter Analyst: Syndax Pharma’s Axatilimab Receives Orphan Drug Designation For Treatment Of Chronic Lung Disease Levi’s 1Q Sales And EPS Beat Estimates; Street Says Buy Crown Holdings To Sell 80% Of European Tinplate Business To KPS Capital For €1.9B Tyson Foods Officially Opens New $425M Tennessee Poultry Complex
KemPharm Inc (NASDAQ: KMPH) has amended the collaboration and license agreement with Gurnet Point Capital (GPC), a private investment firm. The agreement provides for an exclusive worldwide license to develop, manufacture, and commercialize KemPharm's product candidates containing serdexmethylphenidate (SDX) and d-methylphenidate (d-MPH). The deal also includes Azstarys (formerly referred to as KP415) for attention deficit hyperactivity disorder (ADHD) in patients age six years and older. Azstarys received FDA approval in March of this year. Under the terms of the amended agreement, KemPharm is eligible to receive a total of up to $590 million in milestone payments for Azstarys, as well as tiered royalty payments on a product-by-product basis for net sales. Royalty rates range from a percentage in the high single digits up to the mid-twenties for U.S. net sales and a share in the low to mid-single digits of net sales in each country outside of the U.S. Under the original terms, KemPharm was eligible to receive up to $468 million. Price Action: KMPH shares are up 2.1% at $10.4 in the premarket session on the last check Friday. See more from BenzingaClick here for options trades from BenzingaGreenwich LifeSciences' Stock Is Trading Higher After Breast Cancer Immunotherapy Shows 0% Recurrences Over 5 Years Follow-upCelcuity Stock Moves Higher After Licensing Pact With Pfizer For Gedatolisib In Breast Cancer© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Investors need to pay close attention to KemPharm (KMPH) stock based on the movements in the options market lately.