Needham Weighs In On Two Small Healthcare Stocks: Amedica Corporation (AMDA), Medgenics Inc. (MDGN)


Needham analysts are weighing in on biomaterial company Amedica Corporation (NASDAQ:AMDA) and Israeli bio-medical Medgenics Inc. (NYSEMKT:MDGN). The analysts reflect on Amedica’s third-quarter financial results and Medgenics’ value drivers.

Amedica Corporation

In a research report released this morning, Needham analyst Michael Matson reiterated a Buy rating on shares of Amedica Corporation, with a $1.00 price target, after the company reported third-quarter earnings and gave a corporate update.

Matson noted, “AMDA’s 3Q15 revenue missed consensus. Revenue declined 19% Y/Y but was up 1% sequentially with silicon nitride (SiN) implant sales declining 10%. AMDA lowered its guidance for 2015 revenue to $19.0-19.5M from $19.0-20.0M (vs. consensus of $19.3M). AMDA has now submitted two-year data from the CASCADE trial to support FDA clearance of the Valeo C+CsC spacer. We see potential for additional private label and OEM agreements and FDA clearance for Valeo C+CsC to serve as catalysts in the near term and we maintain our Buy rating.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Matson has a total average return of -2.5% and a 49.6% success rate. Matson has a -84.0% average return when recommending AMDA, and is ranked #3296 out of 3842 analysts.

Medgenics Inc.

In a research report released yesterday, Needham’s Chad Messer initiated coverage on shares of Medgenics, with a Buy rating and a price target of $12.00, which represents a potential upside of 67% from where the stock is currently trading.

Messer backed his bullish outlook by noting, “Medgenics recently acquired the metabotropic glutamate receptor agonist NFC-1, a clinical stage compound with efficacy in a genetically defined subpopulation of ADHD. NFC-1 is the first clinical program in an existing collaboration with the Center of Applied Genomics (CAG) at the Children’s Hospital of Philadelphia (CHOP), which exploits CHOP’s pediatric biobank to discover new genetically defined disease targets. This genomic-based approach complements Medgenics’ TARGT gene therapy platform that has also produced a clinical stage candidate, TARGTEPO, for the treatment of anemia. Following a recent fundraising, MDGN holds a healthy $61MM on its balance sheet and now has a diversified portfolio of clinical assets that we believe is capable of delivering meaningful value drivers in the next year.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chad Messer has a total average return of -4.1% and a 35.6% success rate. Messer is ranked #3445 out of 3842 analysts.