Substance Use Disorder Focused Anebulo Could Be Attractive Acquisition Target, Analyst Says

H.C. Wainwright has initiated coverage on Anebulo Pharmaceuticals Inc ANEB with a Buy rating and a price target of $6.

Anebulo Pharmaceuticals is an emerging specialty biopharmaceutical company with a primary focus on developing therapy for acute cannabinoid intoxication (ACI), presenting a unique opportunity as approximately 2.1 million ACI cases are reported in U.S. emergency departments annually.

The company has produced compelling clinical proof-of-concept data, employing a visual analog scale (VAS) methodology to measure the substantial reduction in ACI symptoms, particularly the alteration in the sensation of being "high." This data serves as a risk mitigation factor for the forthcoming clinical advancement of ANEB-001. 

The analysts Boobalan Pachaiyappan and Raghuram Selvaraju note that the ACI indication appears to share some characteristics with the opioid overdose crisis, which resulted in many non-fatal overdoses each year and resulted in nearly 110K deaths in the U.S. alone during 2022.

The analysts note that Anebulo's strategy centers around utilizing ANEB-001, a small molecule antagonist targeting the CB1 cannabinoid receptor. 

H.C. Wainwright says that positive pivotal data for ANEB-001 could make Anebulo an attractive acquisition target.

The analyst says that ANEB-001 could be priced at $2.5K per administration and may ultimately achieve total sales approaching $500 million in the U.S. alone. Assuming a conservative potential launch in 2028, ANEB-001 could reach the U.S. market in 2027, depending upon the speed at which the clinical development progresses. Peak sales could be achieved in the late 2030s.

Price Action: ANEB shares are up 3.91% at $3.33 on the last check Monday.