Reviva data robust across multiple endpoints, says Roth MKM

Roth MKM analyst Scott Henry reiterates a Buy rating on Reviva Pharmaceuticals with a $12 price target after the Phase 3 RECOVER trial met its primary endpoint for brilaroxazine to treat schizophrenia. The efficacy of 50mg brilaroxazine was robust across multiple endpoints with a clear dose response, and the safety profile was clean with lower discontinuation in the 50mg group versus placebo, the analyst tells investors in a research note. The firm recognizes that the share price reaction “may be muted” by Reviva’s financial overhang given current market conditions. However, within the context of its model, a first pass at increasing brilaroxazine’s approval probability from 55% to 70% would increase the stock’s valuation by $3 per share.