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Barrier Therapeutics, Inc. (BTRX) is a biopharmaceutical company focused on the discovery, development, and commercialization of pharmaceutical products in the field of dermatology. Although the company launched two new products (Vusion and Xolegel) in 2006, revenue contribution from these products will not be sufficient to drive Barrier to profitability in the near future.
We believe that the main potential for the company lies with Hyphanox -- we expect to see phase III data on this candidate later this year. Positive results on Hyphanox and suitable partnership deals for Pramiconazole and Hyphanox would help restore investor confidence in the company. In the mean time, we prefer remaining on the sidelines.
Following the release of first quarter results, Barrier announced certain strategic initiatives with the aim of achieving break-even in 2010. The company intends to drive top-line growth through the skillful execution of its sales and marketing plans and through low cost and quick turnaround product line extensions. Barrier also intends to in-license products in late-stage clinical development or co-promote approved products.
Besides this, the company has decided to focus its R&D spend on projects that represent significant returns for the company. In keeping with this strategy, the company has decided to focus its development efforts on Hyphanox which, if approved, should represent significant commercial opportunity.
It is difficult to value BTRX shares, given its little revenue and negative EPS. We currently rate BTRX a Hold, with a price target of $2.50.
Arpita Dutt, CA, contributed to this report.
Read the full analyst report on BTRX.
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