Wednesday, 14 August 2013

Neptune & Acasti Target Prices Increased By Euro Pacific Canada Analyst

Neptune Technologies and Bioressources
Basic Shares: 60.0 million
Fully Diluted: 67.5 million

Acasti Pharma

Shares Outstanding: 79.4 million
Fully Diluted: 91.4 million

Healthcare & Biotech Analyst, Doug Loe, has increased his twelve-month target price on both Acasti Pharma and Neptune. Acasti was increased to $6.75 from $4.75 and Neptune to $6 from $4.75

The basis for the upgrades was yesterday’s positive news on the Phase II Open Label Clinical Trial Results for the investigational new drug candidate CaPre® in the treatment of mild to severe hypertriglyceridemia.

In short, the highly purified krill oil that is the platform for CaPre® may ultimately provide the best available and all natural answer for people who are seeking to decrease triglycerides and LDL while increasing HDL.  The data is extremely encouraging and is the pre-cursor to an ongoing 429 patient Phase II controlled clinical study with those results expected during the first half of 2014.
Mr. Loe comments:


Target increase on reduced clinical risk that Phase I/II open-label COLT data confers. We are maintaining our SPECULATIVE BUY rating on APO/ACST but with positive COLT data materially reducing clinical risk on CaPre development and thus reducing risk on timing/magnitude of our CaPre royalty revenue projections, we are increasing our one-year target price to $6.75 (was $4.75), predominantly by reducing the discount rate embedded in our NPV and discounted earnings valuation methods to 20% (was 30%), as shown in Exhibit 2. We are in parallel increasing our one-year target price on major shareholder Neptune Technologies & Bioressources (NTB-T, NEPT-Q), which we independently cover and to which we ascribe a BUY rating, to $6.00 from $4.75 previously, solely on increasing embedded value of its 61% equity stake in APO/ACST. At current levels, our revised APO/ACST target corresponds to a one-year return of 66.7%.

To read the Acasti update, click here.

To read the Neptune update, click here.