ARS Pharmaceuticals: A Decent Bet For Upside After Neffy Approval

(14min)

Summary

  • ARS Pharmaceuticals' neffy, a needle-free nasal spray for Type I allergic reactions, received early FDA approval, driving a 120% YTD share price increase.
  • Neffy addresses a significant unmet need, potentially capturing a large market share from injectable epinephrine products like EpiPen, with projected peak revenues of ~$750m annually.
  • Despite initial FDA rejection, neffy's approval is backed by compelling clinical data, and ARS plans to expand into Europe, China, Japan, and Australia.
  • While ARS faces challenges from established competitors, neffy's advantages and ARS's strategic marketing efforts make it a slightly risky but compelling buy opportunity.

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Investment Overview

The San Diego based biotech ARS Pharmaceutical's (NASDAQ:SPRY) share price is up nearly 120% year-to-date, and at the end of August, shares made a quick >20% gain, after its lead and only product, neffy, a nasal spray, was

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SPRY over the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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