Aptinyx Represents Untapped Value, BMO Says

Aptinyx Inc (NASDAQ: APTX) reported second-quarter results ahead of expectations and expressed confidence in its cash lasting into 2021.

The company has an ongoing Phase 2 study and is progressing towards initiating another three by the end of 2019. All four are “meaningful” clinical programs and expected to read out in 2020-2021, according to BMO Capital Markets.

The Analyst

BMO’s Gary Nachman maintained an Outperform rating on Aptinyx, with a price target of $15.

The Thesis

Aptinyx reported a beat largely on lower expenses resulting from timing, Nachman said.

Revenue came in at $900,00 million, slightly shy of the consensus estimate of $1 million. The company recorded a loss per share of 36 cents, significantly better than the consensus expectation of 52 cents. The company is managing costs carefully and is confident that its cash will last into 2021, the analyst said.

Aptinyx is conducting Phase II trials for NYX-783 in PTSD and expects to begin three additional key Phase II studies by yearend. This includes two large Phase II studies for its lead compound NYX-2925 in advanced DPN (diabetic peripheral neuropathy) and fibromyalgia as well as a Phase II study for NYX-458 in Parkinson's CI (cognitive impairment).

Price Action

Shares of Aptinyx fell more than 11% to $3.22 on Tuesday.

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