Adamis Has 'Favorable' Pipeline Setup, Says Bullish Raymond James

Adamis Pharmaceuticals Corp ADMP announced its NDA filing Friday for a fast-dissolving sublingual tadalafil tablet for erectile dysfunction.

The Analyst

Raymond James analyst Elliot Wilbur maintained an Outperform on Adamis.

The Thesis

The submission of the NDA is positive, as an approval would place Adamis in the $4-billion-plus phosphodiesterase inhibitor market, Wilbur said in a Monday note.

Even a small conversion rate could translate to a $150-million top-line opportunity, the analyst said. 

Raymond James expects the FDA decision to come through in the fourth quarter, with a potential commercial launch in 2020.

The stock price has factored in a Symjepi launch in Q1, but is not adequately reflecting other pipeline assets, Wilbur said. 

The approval of tadalafil would pitch Adamis against Eli Lilly And Co LLY's Cialis and Pfizer Inc. PFE's recently genericized Viagra, as well as vardenafil, a combo drug consisting of Levitra and Staxyn from GlaxoSmithKline plc GSK.

"We reiterate our Outperform rating as the company continues to make forward progress and provides better visibility on timelines," Wilbur said. "We believe the risk-reward scenario given the pipeline setup is favorable with significant upside." 

The Price Action

Adamis shares were up 3.11 percent at $2.32 at the time of publication Wednesday. 

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