Laidlaw & Co. Initiates Coverage On Nasus Pharma (NSRX) With Buy Recommendation
We are initiating coverage on Nasus Pharma with a Buy rating and 12-month $22 price target. NSRX is a mid-clinical stage biotech/specialty pharma company focusing on the development of NS-002, a well differentiated powder-based intranasal anaphylaxis treatment. Supported by robust clinical data, a second Phase II study will start in 4Q25, and if positive, a pivotal study could start in mid-2026 with topline readout by YE26. The recently reported NS-002 in anaphylaxis Phase II study showed robust outcomes in all measured metrics, especially the critical ones of Cmax, Tmax, T100pg/ml and percentage of patients with time taken to reach 100pg when compared with EpiPen. Results of allergen-challenged in healthy volunteers as simulation of allergic reaction Phase I/II study are also very encouraging and are consistent with expectations, forming a solid foundation for a potentially successful second Phase II study to start in 4Q25. If positive, a Phase III study could start soon thereafter with topline readout by YE26. If Phase III study is positive, an NDA filing in 2027 would follow, with potential approval in 2028. NSRX expects to out-license NS-002 for commercialization. Given the lower risk in clinical development, we are bullish for the potential success of NS-002 in anaphylaxis. To assess the potential pros and cons of different needleless anaphylaxis therapies, we conduct an analysis comparing clinical data of different products, which suggests NS-002 is highly competitive and potentially better than peers. We recognize the caveat of inter-trial comparisons. Substantial variations of clinical data readouts exist even of the same product, but believe this provides a first approximation of differences. We believe NS-002 is fast-acting drug due to high level of absorption and potentially a more effective anaphylaxis treatment by comparing T100 and percentage of patients with time taking to reach 100pg. Further, we are optimistic on NS-002’s commercial outlook: 1) robust clinical data, if repeated in the upcoming studies, could make NS-002 a better therapy with positive commercial implications; 2) maturing acceptance and expansion of the non-injectable anaphylaxis treatment market could benefit NS-002; and 3) the anaphylaxis treatment market is large enough to accommodate several therapeutic products. Our 12-month $22 price target is based on our NPV DCF, forward P/E, and peer comparable analyses.