Alexza's investment case continues to rest on the commercial prospects for Adasuve, a rapid-inhalation treatment for acute agitation in adult schizophrenia or bipolar disorder patients. Adasuve offers speed and dosing reliability advantages in treating acute agitation. Although we have lengthened the sales ramp-up timeline given the 9m14 revenue pace, our 20% peak market share assumption remains unchanged. Given a slower sales ramp up than expected, we expect Alexza will need to raise $20m in capital in H215 to fund operations. Our new equity valuation of $3.67/share (from $4.71 previously) does not reflect this funding gap or requirement.

Alexza Pharmaceuticals is a US-based company developing products for acute CNS disorders using its proprietary Staccato rapid inhalation drug delivery system. Lead product Adasuve is approved in the US and EU for acute treatment of agitation in patients with schizophrenia or bipolar I disorder.


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