Why This Hot Stock Could Spike 100% On Major Catalyst

 

If you are looking for an under-the-radar biotech with big upside potential, look no further.

Marinus Pharmaceuticals (NASDAQ:MRNS) is a cutting-edge stock with a critical focus. The biotech is developing ganaxolone to improve the lives of patients with epilepsy and neuropsychiatric disorders. This includes postpartum depression — a massive market opportunity.

Approximately 500,000 to 750,000 mothers suffer from postpartum depression annually in the US. However, according to a 2013 study, only about 15% of women seek treatment for the condition.

Mizuho Securities’ Difei Yang (Profile & Recommendations) is one of the Top 100 analysts ranked by TipRanks. She sees prices surging by almost 130%. She is extremely optimistic about the upcoming results of a Phase 2 study of ganaxolone IV in women with postpartum depression (PPD).

This trial data could have a big effect on share price. “We anticipate this will be an important catalyst for the shares” writes Yang. She continues “We see upside potential of 100%+ assuming convincing data including a clear dose response.” This would allow the drug to then enter Phase 3 trials.

And the best part is that the risk is relatively low: “We believe the downside is limited given the history of the compound and potential in other indications.”

Indeed, Marinus is following in the footsteps of larger biotech Sage Therapeutics (NASDAQ:SAGE). Ganaxolone is similar to Sage Therapeutics’ Brenaxolone. But this actually works in the stock’s favor. As Yang writes: “We see the recent positive data from Sage in PPD and major depressive disorder (MDD) as positive read-throughs for Marinus.”

Plus there is more than enough room for two players. While Marinus is a much smaller company, with a market cap of approx $180 mil compared to Sage’s ~$8bn, it can still create significant value as the second entrant in a market that has not seen major innovation in years.

Data due in mid-Q4

Marinus has had to delay the results release due to slower-than-expected patient enrollment. However, Yang remains upbeat. “With no change to the trial design, we are not concerned about the slippage on the timeline by a few weeks.”

Ultimately, the delay from Q3 to Q4 is ‘immaterial’ as “Given the complexity of clinical trials with multiple moving parts, it often is a very difficult task to predict the timing of a trial completion.”

Word on the Street

Overall, TipRanks reveals that this ‘Strong Buy’ stock has scored 4 recent Buy ratings. This is with an extremely bullish $16.75 average analyst price target (198% upside potential).

View MRNS Price Target & Analyst Ratings Details

Keep your finger on the pulse with Daily Analyst Ratings

With TipRanks’ Daily Analyst Recommendations users can follow the latest buy and sell ratings of almost 4,800 analysts tracked by TipRanks. Our database covers analysts from the biggest banks such as Goldman Sachs, UBS, Deutsche Bank and Credit Suisse.

Discover the latest stock ideas while simultaneously checking the analyst’s performance ranking. Go To TipRanks Daily Analyst Ratings Tool Now<<

Tags: ,

Leave a Reply

Your email address will not be published. Required fields are marked *

Leave a Reply

Your email address will not be published. Required fields are marked *