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KemPharm Rebounding On Insider Buy And KOL Report

Aug. 03, 2018 9:03 AM ETZevra Therapeutics, Inc. (ZVRA)9 Comments
Spencer Osborne profile picture
Spencer Osborne


  • KemPharm saw the filing for a 304,000 share purchase on August 1st.
  • RBC hosted Key Opinion Leader Conference discussing KemPharm.
  • Stock up as high as $5.85 on August 1st after hours trading.

KemPharm (KMPH) has seen a positive week develop and has recovered some lost ground after market confusion surrounding its Phase 3 read-out on ADHD drug candidate KP415. Early in the week, RBC hosted a Key Opinion Leader conference call in which KP415 was discussed. The call featured RBC analyst Randall Stanicky and Dr. Thomas Laughren, Director, Regulatory Affairs, MGH CTNI at Mass General Hospital. Dr. Laughren once served as Division Director for the Division of Psychiatry Products, Center for Drug Evaluation and Research at FDA and consults to KemPharm.

The RBC call centered around KemPharm's KP415 phase 3 clinical trial results, some of the market confusion surrounding those results, and offered clarity on prospects for approval and obtaining the desired label. More specifically, Dr. Laughren addressed what data the FDA typically considers and pointed out that drug candidates that meet their primary endpoints in a phase 3 clinical trial usually see FDA approval. It is also the opinion of Dr. Laughren that the FDA will fully consider the presentation of ad hoc data that the company seeks to include in its application. This data offers a strong argument for a 30-minute onset of KP415 as well as a 13-hour duration. These attributes would set KP415 above current treatments in both onset of action as well as duration. A good safety profile, along with these attributes could set the stage for a handsome partnership on this drug.

KemPharm stock sold off on the release of the data because of an anomaly within the data that has subsequently been explained by the company as well as a Key Opinion Leader in the area of ADHD treatment. RBC's Randall did not adjust his price target at this stage but did send out a report that laid out what should be considered a bullish stance

This article was written by

Spencer Osborne profile picture
Spencer Osborne assesses equities in a data supported realistic manner that is often missing in analysis that the average retail investor receives. His analysis is what investors NEED to hear rather than what they WANT to hear. He believes that the foundation of an equity price is based on what is probable rather than what is possible, and the trade focuses on possible near term catalysts and news. Smart investing is understanding how the market works and how that market mentality impacts a given equity. Spencer believes that investors should model their expectations and maintain a critical eye on whether those expectations are being met. If an invesor finds herself making excuses for missing the mark, then they are losing objectivity.

Analyst’s Disclosure: I am/we are long KMPH. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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