Top Picks 2022: PLx Pharma (PLXP)

view original post

We are making PLx Pharma (PLXP) a Top Pick for 2022 after the initial strong launch for Vazolore, the first and only FDA approved, liquid-filled aspirin capsule with a unique mechanism of action that avoids gastric distress, suggests John McCamant, biotech specialist and editor to The Medical Technology Stock Letter

Vazolore is off to a very good start with initial sales revenue exceeding expectations despite a difficult COVID-19 environment. The company’s continued targeted marketing efforts are expected to yield sequential sales growth.

A recent survey indicated that 68% of cardiologists are receptive to switching to and/or initiating use of Vazalore based on superior efficacy and ability to prevent gastrointestinal issues compared to other aspirins. 

In our view, Vazalore has the potential to take a nice portion of the $10 billion aspirin market and even grow the market by itself.  Additional upside for the stock lies in Vazalore’s potential to be a pipeline in a pill and PLxGuard’s potential to become a multi-drug delivery platform.

PLXP’s Vazalore is the first and only FDA approved, liquid-filled aspirin capsule with a unique mechanism of lipid encapsulated delivery called PLxGuard. The drug is a highly differentiated formulation with proven advantages over current offerings on both safety and efficacy parameters including achievement of 99% platelet inhibition significantly faster than standard-of-care enteric coated (EC) aspirin.

We believe Vazalore has significant potential in platelet inhibition with nearly twice as many patients achieving a complete antiplatelet effect compared to EC aspirin. In our view, PLXP is de-risked with an approved product and a strong initial launch of Vazalore. The drug has “super aspirin” potential in platelet inhibition, pain relief, and as an anti-inflammatory drug.

We are recommending PLXP based on a combination of Vazalore’s market potential and management’s demonstrated track record. Additional upside for the stock lies in Vazalore’s potential to be a pipeline in a pill and PLxGuard’s potential to become a multi-drug delivery platform.

Potential upcoming catalysts include rising quarterly sales compared with very low Wall Street estimates that may be consistently beat, pipeline updates (Ibuprofen in Phase I), and new candidates added to pipeline. PLXP is a “buy” under $22 with a target price of $35.

Subscribe to The Medical Technology Stock Letter here…