Egalet cash runway through 2020 remains intact, says Cantor Fitzgerald
In a research note titled "You Win Some, You Lose Some; Cash Runway Through 2020 Remains Intact," Cantor Fitzgerald analyst Brandon Folkes says news of CVS (CVS) removing Sprix from its 2018 formulary is a negative for Egalet (EGLT). The development offsets the positive news announced last month that Apotex will not be launching an authorized generic of Sprix in March 2018, Folkes tells investors. He believes, however, that Egalet's cash runway through 2020 remains, even if Sprix revenues in 2018 are reduced by 50%. The analyst thinks Arymo ER is the primary driver of valuation for Egalet. He keeps an Overweight rating on the shares with a $7 price target.