Aegis Capital Rates Alcobra as a Top Pick in 2014

In a report published Thursday, Aegis Capital Corp analyst Raghuram Selvaraju rates Alcobra (NASDAQ: ADHD) as a top pick in 2014.

Selvaraju noted the “compelling value proposition” in Alcobra shares. The analyst commented on value drivers in 2014 including the enrollment in the first or two Phase 3 trials of MG01CI in the first quarter, the second Phase 3 trial with the comparison to Strattera in the second half of 2014, and the initial Phase 2 trial of MG01CI in pediatric patients over the next 4-6 months. Aegis Capital added that Alcobra has the best-in-class product profile with the rapid onset on action for MG01CI. Selvaraju wrote, “In our view, MG01CI could have a best- in-class efficacy profile for treatment of PI-ADHD (also known as attention deficit disorder, or ADD), which comprises over 40% of all ADHD sufferers. The drug has also been shown to be safe and well-tolerated in several clinical trials to date.”

Aegis Capital placed extra emphasis on Alcobra obtaining the Orphan Drug status for MG01CI from the FDA in Fragile X Syndrome (FXS). This award “confers seven years of automatic market exclusivity and a rapid path to commercialization on MG01CI early in its development process as an FXS drug.” A phase 2trial of MG01CI in Fragile X patients is expected to start in the second quarter of 2014. Alcobra may also initiate a Phase 2 trial in autism in 2H 2014.

Aegis has a Buy rating on Alcobra with a $40.00 price target. Shares of Alcobra closed at $18.00 on Tuesday and have traded as high as $18.65 today, up 3.61%.