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Why Are Analysts Bullish about Scynexis?

Scynexis (NASDAQ: SCYX) stock has been battered in the past year as the stock price has dropped by 22.5%.

This is even as the company has delivered positive news regarding its drugs.

Scynexis is a company that is developing medicines to help patients overcome and prevent drug-resistant and difficult-to-treat infections. The company’s lead product candidate is ibrexafungerp, a broad-spectrum intravenous (IV) or oral agent for different kinds of fungal infections.

In December, the company announced the initiation of a Phase 3 global study to evaluate ibrexafungerp in the oral form “as a step-down treatment for invasive candidiasis (IC), including candidemia.” Candidiasis is a form of fungal infection.

Scynexis has also got Orphan Medicinal Product (OMP) designation from the European Union (EU) for ibrexafungerp for treating invasive candidiasis.

Marco Taglietti, M.D., president and CEO of SCYNEXIS, commented on the designation, “Ibrexafungerp benefits from lengthy regulatory and patent exclusivities in the U.S. and around the world. The 10 years of market exclusivity in the EU based on orphan medicinal product designation builds on those exclusivities as we work to expand the approved indications for our groundbreaking therapy to help patients around the world fight these serious and sometimes deadly fungal infections.”

Maxim Group analyst Jason McCarthy was upbeat about the initiation of the Phase 3 trial. The analyst pointed out that there are approximately more than 100,000 cases of invasive Candidiasis each year in the United States where patients are usually treated with IV echinocandins.

McCarthy added that primarily, fluconazole is available as an oral drug for patients as step-down therapy. However, “fluconazole resistance is increasing globally, making treatment more difficult.”

The analyst believes that 35,000 patients are fluconazole-resistant cases when it comes to invasive Candidiasis and as a result, estimates that the market opportunity in the United States could be worth $300 million to $400 million for SCYX’s ibrexafungerp .

The analyst is upbeat about the stock with a Buy rating, and has a price target of $16 (166.2% upside).

Besides McCarthy, two other analysts are also bullish on the stock, which has a Strong Buy consensus rating. The average Scynexis stock prediction of $19.50 implies upside potential of 224.5% to current levels for this penny stock.

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Disclosure: At the time of publication, Shrilekha Pethe did not have a position in any of the securities mentioned in this article.

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