OptiNose's Q2 Results Reflect Strong Underlying Trends, RBC Says

OptiNose Inc’s OPTN XHANCE nasal spray continued to exhibit encouraging trends in the second quarter, suggesting that the company's launch is progressing on track, according to RBC Capital Markets.

The Analyst

RBC Capital Markets’ Randall Stanicky maintained an Outperform rating on OptiNose with a price target of $20.

The Thesis

OptiNose’s second-quarter results reflected strong underlying trends, while tailwinds could continue to support growth in the back half of the year and beyond, Stanicky said in the note.

Management indicated strong acceleration of refill trends and provided XHANCE revenue guidance for the first time for 2019, while reiterating their average net revenue per prescription expectation of $185-$205.

The analyst expects this matric to continue to improve through the second half of the year, as refills continue to ramp.

Stanicky said that seasonality could be a small tailwind in the third quarter. He further noted that the company had recently launched its DTC pilot program, which is scheduled from August through November, spanning three cities.

If this is successful, it could formally launch and expand in 2020.

“Furthermore, the April sales territory expansion is expected to start to help augment growth in 2H,” the analyst wrote.

Price Action

Shares of OptiNose are up 14% to $6.40 at time of publishing.