Earlier today, Brean Capital’s healthcare analyst Jonathan Aschoff weighed in with research reports on the DNA product development company Inovio Pharmaceuticals Inc (NASDAQ:INO), Biopharmaceutical company Repros Therapeutics Inc (NASDAQ:RPRX), and development stage company TG Therapeutics Inc (NASDAQ:TGTX).
Inovio Pharmaceuticals Inc
Aschoff reiterated a Buy rating on INO, with a $20 price target, after the company announced it had entered into an strategic cancer vaccine collaboration and license agreement with MedImmune, the research and development segment of AstraZeneca. The analyst noted, “MedImmune will combine INO-3112 with its own selected immunotherapy molecules to drive enhanced benefit. MedImmune will pay Inovio $27.5 million upfront, plus potential future development and commercial milestones of up to $700 million (roughly half development, half commercial), will fund all development costs, and pay Inovio up to double-digit tiered royalties on any INO-3112 sales. The companies will also develop up to 2 other DNA-based cancer vaccine therapies not currently in Inovio’s pipeline, to which MedImmune will also have exclusive rights, and these other 2 programs have the potential to pay developmental, regulatory and commercialization milestones, as well as potential royalties, to Inovio.”
Repros Therapeutics Inc
Aschoff reiterated a Buy rating on RPRX with a price target of $41, which represents a potential upside of 418% from where the stock is currently trading. The analyst believes that Repros’ valuation is ‘far too low’ based on the potential of Androxal, the Company’s leading drug designed for the treatment of secondary hypogonadism. He wrote, “Androxal will be reviewed by an AdComm of the FDA’s Division of Bone, Reproductive and Urologic Products on November 3, 2015. The PDUFA date for Androxal is November 30, 2015. We do not believe that the AdComm has any valid reason to reject Androxal, given the clear demonstration of efficacy in four Phase 3 efficacy trials and a differentiated safety profile versus exogenous testosterone (TRT) in over 20 trials. Androxal has not only proven itself to be at least as effective as TRT, but affords a patient no negative impact to fertility as well as no negative impact to endogenous testosterone production.” Furthermore, “Repros ended 2Q15 with about $32 million in cash and equivalents, which should be sufficient to support its operations to mid-2016. “.
Aschoff reiterated a Buy rating on TGTX with a price target of $28, following the company’s second-quarter update, which was released this morning. Aschoff wrote, “We maintain our confidence in TG’s continued rapid progress through the clinic and emphasize the importance of owning two assets that, if approved, should allow the company to afford patients a combination therapy at a very competitive price vs. purchase of both activities from two different sources, which is important to payers given the extended duration of lymphoma treatment vs. other more aggressive cancers. We look forward to the imminent start of new triple-regimen trials, particularly with TG-1101, TGR-1202 and a PD-1 inhibitor, as well as with quad combination therapy. TG has ongoing preclinical programs for its IRAK inhibitor, and antibodies against GITR and PD-L1, and it is looking for the best complementary mechanisms-of-action for future trials.”
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