Pain Thera with Clarity Questions

Pain Therapeutics Inc.’s (PTIE - Snapshot Report) lead pipeline candidate, Remoxy, is currently under FDA review. Remoxy is an abuse-deterrent version of pain drug, oxycodone. The product should have significant commercial opportunity upon approval due to its ability to reduce the potential of drug abuse or misuse.

While we believe that Remoxy will see significant demand once launched, our main concern right now is the possibility of the company facing a patent infringement lawsuit for the drug. We fear that Purdue Pharma, the manufacturer of branded oxycodone, may initiate a lawsuit in order to delay the entry of Remoxy.

Moreover, the rest of the company's pipeline is too early stage to get excited about. We would get more bullish on the name once we get more clarity on Remoxy’s intellectual property position. We await more clarity on the situation and believe that concerns regarding Remoxy’s IP position will remain an overhang on the shares. As such, we rate the shares a Hold and see fair value at $10.

Arpita Dutt, CA, contributed to the report.

Read the full analyst report on PTIE