H.C. Wainwright’s healthcare analyst Mark Breidenbach weighed in today with his views on Can Fite Biopharma Ltd (ADR) (NYSEMKT:CANF), following the company’s second-quarter results, which were released last Thursday. The analyst reiterated a Buy rating on the stock, with a $4 price target, which implies an upside of 129% from current levels.

Breidenbach wrote, “In 2Q15, Can-Fite reported a net loss of ($1.8)M, or ($0.08) per share, greater than our estimate of ($0.4)M, or ($0.02) per share. The discrepancy is primarily due to higher-than-expected R&D expense and a change in financial income due to a decrease in the fair value of warrants. Operational expenses for 2Q15 included $941,000 in R&D (higher than our estimate of $591,000) and $617,000 in G&A (in line with our estimate of $628,000). Cash and equivalents at the end of 2Q15 was $7.7M, reflecting a recent upfront payment of $1.3M from a distributorship agreement, discussed below. We estimate Can-Fite’s current cash position could sustain operations until early 2017.”

“Can-Fite announced that Seikagaku had terminated its licensing agreement covering piclidenoson in the psoriasis indication in Japan due to a shift in the company’s strategy. While the agreement with Seikagaku included up to an additional $12M in milestone payments, and royalty revenues upon successful commercialization, we had not factored in these potential revenues from Japanese commercialization into our model,” the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Breidenbach has a total average return of -29.1% and a 0.0% success rate. Breidenbach has a -22.9% average return when recommending CANF, and is ranked #3543 out of 3743 analysts.

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