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Mackie repeats Buy rating on Medexus Pharmaceuticals on growing product demand

'We believe MDP is a must-own for investors investing in the Canadian specialty pharma space as the stock is highly undervalued,' analysts wrote

Medexus Pharmaceuticals Inc - Roth repeats Buy on Medexus Pharmaceuticals ong growing demand for its leading products
Products are Rasuvo and Metoject, designed to treat rheumatoid arthritis and other auto-immune diseases; and Rupall, an innovative allergy medication

Mackie Research on Monday repeated a Buy rating on Medexus Pharmaceuticals Inc (CVE:KMDP) (OCTMKTS:PDDPF) after it posted second-quarter results showing strong demand for its leading products. 

Medexus is focused on the therapeutic areas of auto-immune disease and pediatrics. The leading products are Rasuvo and Metoject, designed to treat rheumatoid arthritis and other auto-immune diseases; and Rupall, an innovative allergy medication.

“Specifically, Metoject unit market demand increased 115%, Rasuvo unit market demand increased 15%, and Rupall unit market demand increased 66% over the same period last year,” CEO Ken d’Entremont said in a statement on Monday.  

READ: Medexus Pharmaceuticals posts strong year-over-year increase in 2Q revenue

Those numbers, especially for Rasuvo and Metroject, impressed analysts at Mackie. 

“We believe the growth trajectory of Rasuvo and Metoject unit sales should continue going forward as originally expected,” wrote analysts Andre Uddin and Yue (Toby) Ma in their note. 

The analyst also noted that Medexus has “three pillars of growth” — organic growth of existing drugs, in-licensing and acquisitions of new products and the development of a reformulated rheumatoid arthritis drug that should have a better safety profile. 

“We believe MDP is a must-own for investors investing in the Canadian specialty pharma space as the stock is highly undervalued and the company is in a strong position to deliver robust long-term growth. We are maintaining our Buy rating and target price of C$10.50,” the analysts wrote.

Medexus’ stock trades around C$3.90 a share.

Contact the author: [email protected]

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Quick facts: Medexus Pharmaceuticals Inc

Price: 4.04 CAD

TSX-V:MDP
Market: TSX-V
Market Cap: $57.14 m
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