Electrocore announced a three-year agreement for Pro Medical Baltic UAB (PMB) to be the exclusive distributor of gammaCore Sapphire to patients suffering from primary headache disorders in Lithuania, Latvia, Belarus, Kazakhstan, and Ukraine. Shares rose 8% at pre-market trading on Tuesday.
GammaCore Sapphire, is a non-invasive vagus nerve stimulation (nVNS) treatment, which helps in the preventive treatment of migraine and cluster headache, and acute treatment of pain associated with migraine and episodic cluster headache.
Electrocore (ECOR) , a commercial-stage bioelectronic medicine company said that the the initial term of the agreement is for three years. PMB has been operating in Lithuania, Latvia, Belarus, Kazakhstan, and the Ukraine for five years and has a recognized network of leading physicians familiar with neuromodulation benefits, the company said. It currently deploys neuromodulation devices like implantable vagus nerve stimulators and will focus on issuing gammaCore for the treatment of cluster headache and refractory migraine.
“Pro Medical Baltic already has experience working with neuromodulation products, and we look forward to supporting their market access activities for gammaCore. This agreement is hopefully the first of many that will see Electrocore expand into new markets.” said Electrocore VP Iain Strickland.
On Dec. 8, BTIG analyst Ryan Zimmerman reiterated a Buy rating on ECOR with a price target of $3.50 (a 115% upside potential).
Zimmerman noted positive results from the company’s PREMIUM 2 study despite lacking statistical significance after being cut short due to the pandemic. The study was undertaken to investigate the use of gammaCore for the preventative treatment of migraine. (See ECOR stock analysis on TipRanks)
The analyst said that the results added to the body of clinical evidence supporting nVNS usage amongst migraine patients.
From the rest of the Street, the stock scores a Strong Buy analyst consensus based on 5 unanimous Buys. The average price target of $3.70 implies upside potential of 127% to current levels.
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