The pharmaceutical company, which specializes in therapeutic products for the central nervous system, has a treatment with "blockbuster" potential, analysts said.
"Avanir's lead asset is AVP-923 which is being developed in various central nervous systems indications," analysts said, adding, "Recently phase two AVP-923 data surprised on another indication, agitation in Alzheimer's disease (AD)."
Must Read: Warren Buffett's 25 Favorite Stocks
An in depth report on the AD agitation market conducted by Deutsche analysts yielded the following insight: AD agitation has blockbuster potential in the US (up to 35% of the treatable market at peak), there are further expansion opportunities in CNS for their lead asset, and a larger pharma player could help expand global AD agitation opportunity.
Shares of Avanir are up 0.85% to $13.04 in pre-market trading.
Separately, TheStreet Ratings team rates AVANIR PHARMACEUTICALS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AVANIR PHARMACEUTICALS INC (AVNR) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow."