Can Aerie Pharmaceuticals Go From 1.5% of the Glaucoma Market to 40%?
Shares of Aerie Pharmaceuticals (NASDAQ: AERI) were trading at their lowest level since 2016 earlier this month, ahead of its third-quarter 2019 earnings update. Afterward, they redefined the meaning of "lowest."
The pharmaceutical company, which specializes in drugs for glaucoma and is developing candidate treatments for other eye diseases, has struggled with the launches of Rhopressa and Rocklatan. Originally projected to combine for $1 billion in peak annual sales, the two drugs claimed a combined 1.5% of the glaucoma market at the end of September. The pharma stock sat below $20 per share.
To be fair, it's still early. Rhopressa has only been on the market for 18 months, while Rocklatan launched just six months ago. But their slow starts, combined with multiple reductions in 2019 revenue guidance, have put investors on edge. Management expresses confidence that the new duo can eventually capture a more than 40% market share. But how confident should investors be that the products and the company are on the right track?
Source Fool.com
