Sitting on a Pile of Cash, AQST is a Speculative Buy with a Long Term Very Bullish Bias

$AQST

Friday, Aquestive Therapeutics Inc. (NASDAQ:AQST) was reiterated a Buy and its price target was raised to 15 Vs 5.75 close at HC Wainwright, as a royalty program it is involved in with Sunovion Pharmaceuticals, a Private company, received FDA approval. The consensus target is 17.17 Vs a 52 wk trading range of 1.41 -10.

The stock got hammered during the C-19 coronavirus chaotic sell off and bottomed on 19 March at 1.76.

There is Strong Support at 5.39, and little overhead Resistance on its recovery, the consensus 1 yr target look reasonable long term as all of our Key indicators are Very Bullish in here, as the market begins to focus on the company’s products that meet unmet medical needs.

The stock turned Bullish on 9 April on broke out on 28 April, and confirmed on 22 May at 5.75.

Aquestive Therapeutics, Inc., (NASDAQ:AQST) is a specialty pharmaceutical company, focuses on identifying, developing, and commercializing various products to address unmet medical needs.

The company markets Sympazan, an oral soluble film formulation of clobazam for the treatment of lennox-gastaut syndrome; Suboxone, a sublingual film formulation of buprenorphine and naloxone for the treatment of opioid dependence; and Zuplenz, an oral soluble film formulation of ondansetron for the treatment of nausea and vomiting associated with chemotherapy and post-operative recovery in the United States and internationally.

Its proprietary product candidates comprise Libervant, a buccal soluble film formulation of diazepam for the treatment of recurrent epileptic seizures; and Exservan, an oral soluble film formulation of riluzole for the treatment of Amyotrophic Lateral Sclerosis.

The company’s proprietary pipeline of complex molecule products include AQST-108, a sublingual film formulation of epinephrine for the treatment of anaphylaxis; and AQST-305, a sublingual film formulation of octreotide for the treatment of acromegaly and neuroendocrine tumors. It also develops AQST-119, an oral soluble film formulation of tadalafil for the treatment of erectile dysfunction; and APL-130277, a sublingual film using apomorphine to treat parkinson’s disease.

Aquestive Therapeutics, Inc. was founded in Y 2004 and is HQ’d in Warren, New Jersey.

Last Thursday, Mr. Keith J. Kendall, President/CEO of Aquestive, stated, “We are pleased to see that the FDA has granted approval for Sunovion’s apomorphine sublingual film, as expected.  This approval is  another validation of the significant value our PharmFilm® based therapies provide in satisfying unmet needs to certain underserved patient populations. We expect that this therapy will generate substantial future license and royalty revenues for our company and we are meeting with potential investors for the monetization of this royalty stream.  We continue to expect that we will receive between $50 to $100-M of non-dilutive capital from the monetization, in one or a series of transactions. The timing of the monetization will depend on market conditions, and will be executed at a time that is optimal for Aquestive.  Based on our current planning and expectations, we believe that we are positioned well with current cash resources and proceeds from a potential monetization of this royalty stream to extend our capital runway well into 2021 and possibly beyond.”

As disclosed in Aquestive’s filings with the SEC, in April 2016, Aquestive entered into a license agreement with Cynapsus Therapeutics, which was later succeeded to in interest by Sunovion, pursuant to which Aquestive granted Sunovion an exclusive, worldwide license with the right to sub-license to certain IP, including existing and future patents and patent applications, covering all oral films containing APL-130277 (apomorphine) for the treatment of motor fluctuations (OFF episodes) in Parkinson’s disease patients, as well as 2 other therapeutic fields.

Have a healthy week, Keep the Faith!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he it the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.