Raymond James starts ARS with Outperform on epinephrine therapy

Raymond James initiated coverage of ARS Pharmaceuticals with an Outperform rating and $18 price target. Neffy, a rapidly-absorbed, intranasally administered epinephrine formulation is positioned to be the first meaningful advancement for the type I allergic reaction/anaphylaxis market in over a decade, the analyst tells investors in a research note. The firm says Neffy’s advantages, namely no needle, compact size, ease of use and improved shelf-life, are likely to drive “substantial market penetration” into the existing market dominated by generic autoinjectors. It believes ARS has adequately addressed the key concerns raised by the complete response letter in Q3 of 2023 with its most recent study, and that Neffy has a high likelihood of approval by its October 2 FDA action date.