Drug Stock Lifted by New Collaboration

Most analysts are already tremendously bullish toward ETON

In the biotech sphere today, the big news is a co-promotional agreement between drugmakers Eton Pharmaceuticals Inc (NASDAQ:ETON) and privately held Xellia Pharmaceuticals. The two companies will team up to promote Biorphen, Eton's Food and Drug Administration (FDA) approved blood pressure treatment.

In response, Eton stock is up 3.2% to trade at $7.37. The shares have spent the start of 2020 consolidating below $7.50, with their 20-day moving average cushioning pullbacks below. Since a Sept. 5 bottom of $5.13, ETON has now tacked on 44%.

There hasn't been a peep from the analyst community in response to the agreement. But that may be because most analysts are firmly entrenched in the bullish camp, with all three in coverage doling out "buy" ratings. Plus, the consensus 12-month price target of $16.83 is a 135.7% premium to Friday's closing perch at $7.14.

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