Verrica's Ycanth Unlikely to Face Near-Term Competition, Analyst Upgrades Stock On FDA Approval
Portfolio Pulse from Vandana Singh
The FDA has approved Verrica Pharmaceuticals' Ycanth solution for molluscum contagiosum in patients two years and older. Following this, Needham upgraded Verrica's stock to Buy from Hold with a price target of $10. The analysts believe that the current valuation underappreciates Ycanth's potential to become standard-of-care for molluscum and its potential for wider use in other types of warts. The most near-term potential competitor to Ycanth is a product developed by Novan Inc, which recently filed for bankruptcy.
July 25, 2023 | 5:04 pm
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NEGATIVE IMPACT
Novan Inc, the most near-term potential competitor to Verrica's Ycanth, recently filed for bankruptcy. This could potentially reduce competition for Ycanth.
Novan's recent bankruptcy filing could potentially reduce competition for Verrica's Ycanth. This is a negative development for Novan and could impact its stock negatively.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Verrica's stock has been upgraded to Buy by Needham following FDA approval of its Ycanth solution. The stock's current valuation is seen as underappreciating Ycanth's potential.
The FDA approval of Ycanth and the subsequent upgrade of Verrica's stock by Needham are positive developments for the company. The analysts' belief that the stock's current valuation underappreciates Ycanth's potential suggests a positive outlook for the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100