Gemphire Therapeutics Could Have A Blockbuster Drug In Development

Laidlaw’s Jim Molloy believes Gemphire Therapeutics Inc’s (NASDAQ: GEMP) lead product candidate, Gemcabene, has the potential to become one of the most interesting entrants to the cardiovascular disease (CVD) space, with “true blockbuster potential.”

Molloy initiated coverage of the company with a Buy rating and price target of $20.

Gemcabene

The analyst explained that gemcabene was an oral small molecule pill that had demonstrated “dramatic LDL-C and triglyceride lowering potential in Phase 2 trials, when used with standard statin therapy, as well as lowering a variety of other key markers of CVD.”

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There were also no drug-drug interactions, while the safety profile was very clean across 18 clinical trials of 895 patients.

Significant Potential

“We believe gemcabene has the potential to become standard of care for the ~14 million patients in the US alone who are unable to reach their LDL-C or TG goal on standard statins,” Molloy stated.

Gemphire Therapeutics is also exploring the use of Gemcabene in in Homozygous Familial Hypercholesterolemia (HoFH), Heterozyg12ous Familial Hypercholesterolemia (HeFH) and Nonalcoholic Steatohepatitis (NASH).

Blockbuster Candidate

Several key Phase 2b data readouts are expected in 2017 and Molloy believes that “GEMP is a compelling early stage CVD opportunity with significant upside potential.”

According to the Laidlaw report, “Gemcabene’s differentiated MOA, efficacy/safety profile, and once a day oral delivery could lead to substantial cost savings at an estimated price of ~$3,200/annually vs over $14,000/annually for the newly launched injectable PCSK9 products.”

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