Roth Capital analyst Elemer Piros offered commentary on Plasmatech Biopharmaceuticals Inc (NASDAQ:PTBI) following the licensing of a program to treat a wide variety of rare blood disorders, including Fanconi Anemia. The analyst maintained a Buy rating on the stock with a price target of $16.00, which represents a potential upside of 126% from where the stock is currently trading.

Piros noted, “We arrive at our 12-month price target of $16/share by adding the after-tax, risk-adjusted NPV of future cash flows from PlasmaTech’s Sanfilippo program combined with a technology value for its additional assets. We currently ascribe a 35% probability of success for the treatment of Sanfilippo syndrome. The probability-adjusted (35%), fully taxed (35%) NPV (15% discount rate) of future cash flows is over $300MM ($11/share), in our calculation.”

Furthermore, “By adding $150MM ($5/share) technology value embedded in license fees and royalties from legacy products, the company’s plasma fractionation business and the Batten disease program, we arrive at a value of $485MM ($16/share). Factors that could prevent shares of PlasmaTech from achieving our price target include: poor trial outcome and adverse market conditions for stocks in the biotechnology sector. While the company has $30MM on the balance sheet (sufficient to fund 2-3 years of operations), additional capital may not be available under favorable terms, or at all.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Elemer Piros has a total average return of -3.9% and a 36.4% success rate. Piros has a -2.9% average return when recommending PTBI, and is ranked #3020 out of 3629 analysts.