Veru Stock Forecast 2022 is revised LOWER to $34
Veru Stock Forecast: Performance Chart 2022
|5 day||1 Month||YTD|
|Veru Stock Performance||+0.57%||+17.58%||+156.36%|
Veru Stock Forecast: 2021 Review
Veru had a volatile year in 2021 with prices ranging from $19.80 in February to $5.91 in December. The year started at $8.65 and ended at $5.89
|December 31st, 2020||$8.65|
|December 29th, 2021||$5.91|
|February 16th, 2021||$19.82|
|December 31st, 2021||$5.89|
Veru Stock Forecast: Price Target 2022
|Average Price Target 2022||July 21st||$34|
Veru Stock Forecast: Bull Case
Phase 3 Trials of Covid Medicine –Veru Pharma made 182% move on-11th April 2022 on the backdrop of positive interim phase 3 clinical trials for its oral drug for Covid 19 – sabizabulin. The medicine reduced the risk of death in hospitalized patients infected moderately to severely by Covid 19 by 55%. The study took place on 210 patients and no major after-effects like dizziness are found in the patients. Significantly, sabizabulin is said to provide protection against multiple Covid variants including omicron – a very contagious strain.
Although Veru Inc was in the limelight due to these clinical trials right now, but is also known for therapies for breast and prostate cancer. Last year it received regulatory approval for its benign prostatic hyperplasia therapy called Entadfi. The global market for this medicine is around $200 million and if Veru Inc is able to capture even 50% of that it will be a big boost for the company’s revenue. Its trailing 12 months’ revenue is only $60.7 million and that can easily double a couple of years down the line with the help of Entadfi.
It also has an evergreen product in the face of FC2 female condom, which is sold globally and has given $14.1 million of revenue in the first quarter of fiscal year 2022.
Analysts upgrade the rating and target price- Analysts were quick to react after the announcement of clinical trials just like investors and applauded the efforts of Veru Inc towards producing yet another medicine against Covid 19.
Oppenheimer analyst Leland Gershell gave an outperformance rating to Veru Inc stock and upgraded its target price from $25 to $36. He noted that revenue hopes from sabizabulin are high and it could improve the top-line growth of the company significantly.
Jefferies gave a target price of $33 and Brookline has a target price of $29 with a buy rating.
Average target price for Veru Inc is $29.2
Veru Stock Forecast: Bear Case
Various risks around the corner- Every Covid 19 medicine candidate gets the limelight just like Veru Inc candidate sabizabulin. All the positive forecast for revenue and price targets hangs on a thin thread – Emergency Use Authorization (EUA) from regulators. When we talked about the bull case, we discussed all the positive outcomes of drug candidates, but it is all subject to EUA.
Regulators have not seen all the documents of sabizabulin as the company has not applied for EUA yet and a slight mishap in the regulatory approval can trigger a major downslide for Veru Inc. More significantly, even a no news case for a couple of months down the lane could start a strong sell-off from investors in a risk-averse market. Any substantial gains from Covid 19 candidate can only be captured after EUA from authorities.
Not a profitable company yet- Currently the US share market is experiencing meme-like days and is more news-driven and the stocks are moving 100-200% on an average on the inflow of the positive news. But a closer look at the companies reveals a lot about investing companies.
Veru Inc is not profitable yet. It is making losses in the range of 20 million for a couple of years. Although, its revenue has doubled from $32 million in 2015 to $60.8 million trailing 12 months, but it is not converting that into the profit yet. The reason is, that operational expenses have increased from $12 million in 2015 to $60 million in 2021. So, at this juncture of time, we can only say that it is a loss-making company.
Veru Stock Forecast: Conclusion
It is good to see the pharmaceutical companies still finding innovative medicines to fight against Covid 19 and curb the unparalleled damage it has caused at the global front. It is good to hear about the phase 3 clinical trials and more so because its work mechanism is independent of Covid strain but its commercial results depend on EUA from regulators which will take a while and it is going to test the patience of investors.
Factually Veru Inc is a loss-making company and its stock was a penny stock till last month. It is true that there is a possibility of it being a big winner in the near future, but the possibility is very thin. Moreover, there are number of companies lining up Covid medicine and Veru Inc is not without competition.
Veru Inc stock is recommended to buy only for high risk taking investors and people with average risk tolerance should avoid it at current levels.
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