Aerie Prepares Rhopressa For Commercialization Ahead Of A Slew Of Other Data Catalysts

Cantor Fitzgerald reiterated its Overweight rating on Aerie Pharmaceuticals Inc AERI as the company prepares for commercialization of Rhopressa for a potential approval in early 2018.

Aerie had resubmitted the Rhopressa NDA in February, and Cantor Fitzgerald's analyst believes Rhopressa provides a compelling treatment option for glaucoma.

Data Catalysts

Meanwhile, Aerie continues to progress its potential opportunities in Europe and Japan, and expects to initiate its European Phase 3 Mercury 3 trial in mid-2017, which, if positive, could lead to an MAA filing in 2018.

In Japan, Aerie gained agreement with the PMDA on a plan to conduct US-based Phase 1 and Phase 2 studies in Japanese and Japanese Americans, followed by Phase 3 trials in Japan planned for the second half of 2018.

“We expect a six-month readout from Rocket 4, which provides key safety information, for US and EU approval,” analyst Elemer Piros wrote in a note.

Piros also expects the three-month efficacy data from the Mercury 2 trial in the second quarter and 12-month safety and efficacy data from Mercury 1 in the third quarter.

“We believe future readouts expected in 2Q17 and 3Q17 will further support the profile of Rhopressa and Roclatan (a Rhopressa/latanaprost combination) in the treatment of glaucoma and will lead the first innovative drug approval in over 20 years,” Piros continued.

Potential Sales

Piros, who raised the price target to $56 from $50, believes the pair of drugs could achieve total revenue potential of more than $1.3 billion when they reach peak market penetration, likely in 2023. The analyst ascribes an 80 percent probability of success for the two drugs to receive marketing approval.

At last check, shares of Aerie Pharma were up 0.60 percent to $50.25.

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