PLx Pharma Inc: Falls after Raymond James moves to sidelines

PLx Pharma Winddown

14/01/2019 17:28

** Late-stage specialty pharma co's shares  PLXP.O  down 5.4
pct at $4 after Raymond James downgrades to "market perform"
from "outperform"
    ** While PLXP's Vazalore's long term opportunity is
attractive, getting there is expensive, brokerage says; removes
PT on stock
    ** Vazalore is the company's aspirin formulation developed
in two versions -- 325 mg and its companion 81 mg dose
    ** Co has received regulatory approval for the Vazalore 325
mg and awaits approval for the 81 mg dose; company aims to sell
both the products in the U.S. by mid-2020
    ** Last month, co said it raised $15 mln to advance Vazalore
to market readiness sending its shares down 24 pct
    ** Raymond James says the capital raise was more dilutive
than expected, increasing possibility that future necessary
fundraising for successful launch will also occur at less
favorable levels
    ** Brokerage also lowers Vazalore sales assumption saying
launch of the drug will continue to be restrained by potential
funding constraints for an extended period post launch
    ** Current avg rating on stock is "hold"; median PT $6
    ** Stock had lost more than half its value in 2018 

 (Reporting by Amy Caren Daniel in Bengaluru)
 ((Reuters Messaging:
Amy.CarenDaniel.thomsonreuters.com@reuters.net))