Aldeyra Has 'Catalayst-Rich' 12 Months Ahead, Jefferies Says In Bullish Initiation

Shares of Aldeyra Therapeutics Inc ALDX, a company focusing on immune-mediated diseases, are primed for further upside, according to a Jefferies analyst. 

The Aldeyra Analyst: Kelly Shi initiated coverage of Aldeyra shares with a Buy rating and $24 price target.

The Aldeyra Thesis: Aldeyra's lead asset reproxalap has substantial opportunity in ocular inflammatory dry eye disease and allergic conjunctivitis, Shi said in a Friday initiation note. 

With market dominant brands such as Allergan's Restasis and Novartis AG's NVS Xiidra having pitfalls such as slow onset of drug action and a suboptimal patient experience, there is an unmet need in moderate-to-severe dry eye patients on chronic therapies, the analyst said.

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Aldeyra's reproxalap has shown a differentiated product profile to date, suggesting commercial competitiveness if approved, she said. 

Two Phase 3 data releases in the first half of 2021 should serve as major catalysts, Shi said.

"Other progress from Aldeyra's immune-disease focused pipeline in rare ocular disorders, autoimmune diseases, oncology, and Covid set up a catalyst-rich 12 mos to offer further upside." 

ALDX Price Action: Aldeyra shares gained 5.86% in Friday's session, closing at $6.68. 

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