Scynexis Inc (NASDAQ: SCYX) has already got investors focused on its lead product candidate known as SCY-078, which is being developed as an oral treatment for candidiasis. Interim results from a Phase 2 trial of the candidate showed that it met all the primary endpoints. The results boosted optimism on the prospects of SCY-078 and analysts at Guggenheim Securities have just provided another reason to be confident with the direction Scynexis is moving.
The analysts have initiated the stock with a BUY recommendation and they have $15 price target on it. Considering that shares of Scynexis Inc. (NASDAQ: SCYX) are currently trading in the vicinity of $2.60, Guggenheim’s price estimate suggests steep upside potential.
The reason Guggenheim analysts are optimistic on the future of Scynexis is that they see massive commercialization potential for the company’s lead candidate SCY-078.
Phase 2 study results
In the Phase 2 study, Scynexis said that the main primary objective was to identify the oral dose of SCY-078 that would generate target exposure in at least 80% of the subjects. Analysis of the study data showed that a dose of 750mg will help in achieving target exposure in more than 80% of the patients enrolled in the trial.
Scynexis Inc. (NASDAQ: SCYX) also assessed the safety and tolerability of the dose and the outcome turned out to be favorable.
Scynexis said that it is in the process of kicking off subsequent trials of SCY-078, including a study that is set to begin before the end of 2016 and another that will roll out in 1Q2017.
2Q2016 results – Scynexis Inc. (NASDAQ: SCYX)
Scynexis Inc. (NASDAQ: SCYX) posted EPS loss of $0.56 in 2Q2016, which improved from EPS loss of $0.78 in the same period last year.
Scynexis finished the quarter with cash, cash equivalents totaling $50.3 million and net working capital of $48.2 million. The company raised about $22.5 million in June through the sale of securities that included common shares and warrants to purchase common shares. The management said that the cash raised through the securities transaction together with available cash balance should be adequate to fund operations through the end of 1Q2018.