Achieve Life Sciences (ACHV) is a clinical-stage pharmaceutical company that is developing and commercializing cytisinicline to address the problem of smoking and nicotine addiction.
Cytisinicline is a plant-based alkaloid that has a high binding affinity to nicotine receptors in the brain, and reduces the severity of nicotine withdrawal symptoms.
Currently, cytisinicline is an investigational product candidate, and has not been approved by the U.S. Food and Drug Administration (FDA).
I am neutral about this stock. (See Achieve Life Sciences stock charts on TipRanks)
In the second quarter of Fiscal Year 2021, the company completed the enrolment of 810 adult smokers at 17 clinical sites in the U.S. for its Phase 3 ORCA-2 trial. This trial is for evaluating the efficacy and safety of 3 mg. of cytisinicline dosed thrice a day.
The company was also issued patents by the U.S. Patent and Trademark Office regarding the thrice-daily dosing regimen of 3 mg. of cytisinicline in the second quarter, and these patents are expected to expire in Q3 of 2040.
According to H.C. Wainwright analyst Vernon Bernardino, in the Phase 2 study of ORCA-1, “cytisinicline demonstrated strong ability to help people who struggle with nicotine addiction.”
As a result, the analyst is optimistic about the Phase 3 ORCA-2 trial and believes that cytisinicline is targeting a “blockbuster opportunity.”
The analyst is bullish on the stock with a Buy rating, and a price target of $24 (143.9% upside) on the stock.
In the second quarter, while the company did not earn any revenues, Achieve’s net loss narrowed to $1.53 per share from $1.68 per share in the same quarter last year. As of June 30, Achieve had $42.1 million of cash and cash equivalents on its balance sheet.
In May, the company completed the financing of $23 million by closing an underwritten public offering of 3.28 million shares priced at $7 per share.
Turning to the rest of the Street, Wall Street analysts are bullish about Achieve Life Sciences, with a Strong Buy consensus rating, based on five Buys.
The average Achieve Life Sciences price target of $37 implies 276% upside potential from current levels.
Disclosure: At the time of publication, Shrilekha Pethe did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.
