NEW YORK (AP) – A William Blair & Co. analyst said that Adolor Corp. should be “a major participant” in developing treatments for constipation, and he initiated coverage of the stock with an “Outperform” rating.
Analyst Tim Lugo said sales of Adolor’s drug Entereg, which treats constipation in patients being treated with opioid pain drugs, could reach around $100 million in 2015. Adolor is in the process of gaining the full rights to Entereg from its partner GlaxoSmithKline PLC, and Adolor said sales in the second quarter rose 31 percent to $8.2 million. Lugo said Entereg would have always been a minor product for GlaxoSmithKline, but it’s a more significant asset for Adolor.
The Exton, Pa., company is conducting human trials of two other potential treatments for opioid-related constipation. Lugo said there is still strong interest in new treatments for the condition, as the first generation of drugs has not satisfied the market’s demand.
Lugo set a price target of $6.50 on the stock, which has traded between $1.01 and $2.83 in the last 12 months.
Date: August 5, 2011
Source: Associated Press
Filed Under: Drug Discovery