Dutton Associates initiates coverage of NexMed, Inc. (Nasdaq:NEXM) with a Strong Speculative Buy rating and a 12 month target price of $3. The 16-page report by Dutton senior analyst Denise T. Resnik, M.S. is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
NexMed’s transdermal drug delivery platform technology has broad application potential. Its current portfolio of therapeutics under development address markets with multi-billion dollar potential. NexMed has positioned itself as an emerging drug development company with a focus on developing and commercializing therapeutic products based on proprietary delivery systems. The Company is currently focusing efforts on new and patented topical pharmaceutical products based on a penetration enhancement drug delivery technology known as NexACT® , which it believes may enable an active drug to be better absorbed through the skin. One product, for nail fungus, has resulted in a collaboration agreement with a major pharmaceutical company, Novartis Ag (NYSE:NVS) and has begun Phase 3 clinical trials. Another product, for male erectile dysfunction is being reviewed for marketing approval in the United States. A product that treats female sexual arousal disorder has completed two Phase 2 trials. We believe that as the nail fungus drug progresses towards approval, as collaboration agreements are signed for the erectile dysfunction and female sexual arousal disorder treatments, and as additional applications are identified, the shares will move higher. Although we have assigned a 12-month price target of $3.00, up 100% from the current price level, we believe that success in just the current endeavors could result in much higher valuations for the shares. We initiate coverage with a rating of Strong Speculative Buy.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $39,500 from the Company for 4 Research Reports with coverage commencing on 10/19/07. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.
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John M. Dutton, 916/941-8119
