Maxim Group Starts Cerecor (CERC) at Buy

Maxim Group analyst Caroline Palomeque initiates coverage on Cerecor (NASDAQ: CERC) with a Buy rating and a price target of $10.00.

• We are initiating coverage of Cerecor, Inc. with a Buy rating and a $10 price target. The company is under new management, which has made acquisitions to bring in revenue-generating products while it develops its potentially high-value assets in Parkinson's disease (PD) and rare pediatric diseases.
• Revenue from pediatric vitamins/supplements/pharmaceuticals was $18M in 2018 and expected to be over $20M in 2019 (and growing), partially offsetting opex related to the pipeline.
• Parkinson's disease, two assets: CERC-301 for Neurogenic Orthostatic Hypotension (nOH) (P1 data mid-19), CERC-406, a differentiated COMT inhibitor with high brain penetration (IND-enabling underway, P1 2020).
• Three swings in rare pediatric diseases: the CERC-800s targeting metabolic disorders. These are ultra-orphan (N in the few hundreds globally) and on the 505(b)(2) pathway, which means shorter, faster trials and each could gain (on an approval) a high-value Pediatric Review Voucher (PRV).
• Conclusion: New management is in place and implementing a strategy to leverage revenues from acquired commercial-stage products to develop a diverse pipeline, which in our view is where the unlocked value in Cerecor lies.

For an analyst ratings summary and ratings history on Cerecor click here. For more ratings news on Cerecor click here.

Shares of Cerecor closed at $5.19 yesterday.

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