This analyst raised his price target on Impel NeuroPharma by more than 50%

Impel NeuroPharma Inc. (NASDAQ: IMPL) secured U.S. FDA approval for its Trudhesa nasal spray as an acute treatment of migraine in adults (with or without aura). Shares of the company opened more than 40% up on Friday but lost the entire gain later on.

Ken Cacciatore rates Impel at outperform

Analysts at Cowen, however, were not discouraged by the sell-off. In a research note to clients this morning, the investment bank’s Ken Cacciatore rated IMPL at “outperform” and raised his price target on the stock from $35 a share to $55 a share.

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Compared to the current price of $19.50, the bullish call represents a close to 200% increase from here.

According to the Migraine Research Foundation, as many as 1 billion people worldwide, including 39 million in the United States, suffer from migraines. Impel’s announcement comes more than a week after Impel NeuroPharma reported its financial results for the second quarter.

Trudhesa to commercially launch in early October

Approval from the U.S. FDA comes after a Phase 3 trial that successfully established Trudhesa as effective, safe, and well-tolerated. Close to 70% of the 360 participants reported relief within two hours after using the nasal spray in the late-stage trial. The Seattle-headquartered company is now scheduled to commercially launch Trudhesa next month.

According to Impel, Trudhesa uses the vascular-rich upper nasal area to quickly deliver dihydroergotamine mesylate to the bloodstream. This is what gives it an edge over its competitors in this market that is crowded with intravenous (can’t be self-administered) or oral medications (absorption issues).

Impel debuted on the Nasdaq Stock Exchange earlier this year in April at a per-share price of $15 and is now valued at $338 million.