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Q4/22 Catalysts Could Boost Undervalued Biopharma Stock
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The year's final quarter is significant for this U.S.-based firm given the trio of significant clinical achievements in its sight, noted a Laidlaw & Co. report.

Aldeyra Therapeutics Inc. (ALDX:NASDAQ) remains on track to potentially reach three significant milestones before year-end, reported Laidlaw & Co. analyst Dr. Yale Jen, in a November 10, 2022 research note.

Together, these would advance its three primary drug candidates and potentially lift its share price.

The biopharma's shares are still undervalued, Jen highlighted. The disparity is evident when comparing Laidlaw's target price on Aldeyra, US$50 per share, to the company's current price, US$5 per share. With its upcoming catalysts and undervaluation, the company is currently a compelling investment and is rated Buy.

The Catalyst Trifecta

The developer of therapeutics for immune-mediated diseases expects to achieve the following during the last weeks of this quarter, Jen reiterated:

1) Submit a new drug application (NDA) to the U.S. Food and Drug Administration (FDA) for its reproxalap drug candidate as a treatment for dry eye disease, Jen wrote. Following approval, the analyst added, Aldeyra would likely seek a partner to commercialize the therapeutic.

2) Complete a pre-NDA meeting with the FDA  for its drug candidate, ADX-2191, in primary vitreoretinal lymphoma.

3) Release topline data from the Phase 2 trial of ADX-629 in acute alcoholic hepatitis.

Better-Than-Expected Q3/22

In his research note, Jen also reported Aldeyra's Q3/22 topline financials, which were better than Laidlaw and the Street expected. The company posted a net loss of -US$14.6 million (-US$14.6M) [-US$0.25 per share], better than Laidlaw and consensus' estimates of -US$18.5M (-US$0.32 per share) and -US$20.6M (-US$0.35 per share), respectively.

At the end of Q3/22, Aldeyra had about US$185M in cash, enough, according to Jen, to carry it through next year.

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Disclosures For Laidlaw & Company, Aldeyra Therapeutics November 10, 2022


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