Dallas, Texas 06/26/2015 (Financialstrend) – DURECT Corporation (NASDAQ:DRRX) enters the final phase of it study on postoperative pain in patients who are undergoing gall bladder surgery (POSIDUR). That was based on the advice from the FDA to evaluate POSIDUR. The company will commence the enrollment in the fall season while the top line results will likely be disclosed during the later part of the year 2016. However, an analyst from Cantor Fitzgerald, Irina Rivkind Koffler, believes that the stock presents 20% upside potential to reach $3.
Reduction In Pain
In the earlier study of treating 50 patients, DURECT Corporation (NASDAQ:DRRX)’s POSIDUR demonstrated 25% reduction in the intensity of pain on movement during the first three days following the surgery. That is a bupivacaine’s long-acting formation.
The latest move comes after the company was served with a Complete Response Letter in February last year. The letter indicated that the regulator could not approve the firm’s NDA in its present status. That was due to insufficient data on safety.
Cantor Fitzgerald analyst accorded DURECT Corporation (NASDAQ:DRRX) shares as Buy rating. The company’s rating and the price target is mainly because of the potential on POSIDUR. The analyst thinks that it provides opportunities like royalty-generating partnerships such as Eladur, Relday, and Remoxy. Koffler thinks that the company is developing a unique steroids class for treating chronic, as well as, acute indications like metabolic disease or liver or kidney injury.
The analyst believes that DURECT Corporation (NASDAQ:DRRX) is moving in the right direction with its final phase for the treatment of postoperative pain management. The brokerage thinks that the company will be able to get the approval of the FDA for the drug by late 2017. That is subject to the company going as per the plan in its final phase of the study. The analyst assigned 75% probability of getting the FDA approval as the management is more optimistic about the trial outcome.