H.C. Wainwright’s healthcare analyst Reni Benjamin weighed in with a few insights on Can-Fite BioPharma (NYSE:CANF), as the company announced preclinical results from CF602, which has been evaluated in a rodent model of diabetes-related erectile dysfunction (ED), generating a 118% improvement in a physiological index of ED relative to placebo.

The analyst rates the stock a Buy with a $7 price target, which represents a potential upside of 108% from where the stock is currently trading.

 

Benjamin noted, “The preclinical results follow a series of clinical development updates, including the treatment of the first patient with CF102 in the Phase 2 trial for hepatocellular carcinoma (HCC), and the finalized design of a planned pivotal Phase 3 study of CF101 in rheumatoid arthritis (RA), which could potentially begin later this year, along with a pivotal Phase 3 trial in psoriasis, under a Big Pharma/Biotech partnership. Given the company’s Phase 3-ready pipeline, potential to secure a major partnership, and a pro forma cash position of $10.7 MM, we believe Can-Fite represents an undervalued player with significant upside for the long-term investor.”

Furthermore, the analyst highlighted the upcoming milestones for the stock, “We continue to believe that Can-Fite’s psoriasis program remains the principle value driver of shareholder equity. Can-Fite’s randomized Phase 2/3 study evaluating CF101 in 291 psoriasis patients is slated to report final data in March 2015. Additionally, the design of a Phase 3 trial in RA was recently finalized. Per the protocol, the RA study will include three arms: CF101 dosed at 2 mg, 3 mg, and placebo. Approximately 300 patients will be enrolled (to provide a statistical power of at least 90%) and the trial’s primary end point will be ACR20 response at three months. As expected, patients will be stratified by A3AR expression levels prior to treatment. If the complete Phase 2/3 psoriasis results are positive, we believe the pivotal trials in both psoriasis and RA could commence in mid-2015 under a Big Pharma/Biotech partnership. In our opinion, both the pending Phase 2/3 psoriasis readout and the potential partnership provide multiple near-term opportunities to generate shareholder value.”

Can-Fite BioPharma, Ltd., a clinical-stage biotechnology company, develops small molecule therapeutic products for the treatment of autoimmune-inflammatory, oncological, and ophthalmic diseases.