Insider Monkey makes bull case for Achieve Life Sciences, maker of smoking cessation therapy
Insider Monkey believes that now might be the best time to buy shares of smoking cessation therapy maker Achieve Life Sciences, as the stock is trading near one-year lows. That is despite the fact that the company has recently completed clinical trials for its nicotine addiction treatment and may now file for regulatory approval. It could be on its way to capturing a significant share of a $1 billion market.
Details
Achieve Life Sciences presents an attractive investment opportunity, with its nicotine addiction treatment positioned to “disrupt the market,” according to Insider Monkey. The company has recently concluded clinical trials with good results in terms of both efficacy and safety. Now, Achieve may file an application for the U.S. Food and Drug Administration to approve its drug as early as April or May.
“This positions Achieve for substantial upside potential, especially as the stock currently trades near 52-week lows despite being de-risked,” Insider Monkey notes.
About Achieve Life Sciences
Achieve is a small company developing a treatment for nicotine and vaping addiction based on cytisinicline, a plant-derived alkaloid. In 2024, the drug received “breakthrough therapy” designation for vaping cessation from the FDA, since it has no peers in existence globally. Applications for such drugs are typically reviewed on a priority basis.
Approval of cytisinicline for both smoking and vaping cessation could have a significant impact on global health, as previously noted by Freedom Finance Global. According to the World Health Organization, the “tobacco epidemic” claims over 8 million lives annually — 7.0 million from direct use and 1.3 million from secondhand smoke exposure.
Insider Monkey estimates the nicotine cessation market’s size at more than $1 billion. If Achieve captures a “conservative” 30% market share, its annual revenue could reach $300 million, bringing the company’s valuation to about $1 billion, while revenue of up to $600 million could push its valuation to $1.8 billion, according to Insider Monkey’s estimates. Currently, the company’s market capitalization stands at $102.5 million.
Stock performance
Over the last 12 months, Achieve is off almost 36%. However, analysts see significant upside for it, according to MarketWatch. The name has eight “buy” recommendations and no “sells,” with an average target price of $15.56 per share, implying upside of more than 400%.
