Healthcare analysts weighed in today on small-cap biotech companies Advaxis, Inc. (NASDAQ:ADXS) and Catalyst Pharmaceuticals Inc (NASDAQ:CPRX), with positive ratings. Let’s take a look and see what the analysts have to say about ADXS and CPRX.
H.C. Wainwright analyst Swayampakula Ramakanth reiterated a Buy rating on shares of Advaxis, with a price target of $30, after the company announced that the FDA has lifted the clinical hold on all of the company’s ongoing clinical studies.
Ramakanth noted, “We do not expect the results of the ongoing axalimogene filolisbac, ADXS-HER2, nor ADXS-PSA studies to be affected by the interruption caused by the clinical hold. Based on our conversation with management, the majority of the studies, such as the axalimogene filolisbac high-dose study, the axalimogene filolisbac/MEDI4736 combination study, and the ADXS-PSA/Keytruda combination study, were in the dose-escalation phase and the interruption came at a natural “break” between different doses.”
“For studies in the treatment phase, such as the GOG 0265 study, we believe that patient recruitment may be expanded and/ or the planned statistically analyses may be modified to account for the patients who were affected by the clinical hold. We also note that since the current studies are all open label and non-randomized rather than double-blinded and randomized, it could be easier for management to mitigate any potential statistical effects caused by the clinical hold,” the analyst continued.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Swayampakula Ramakanth has a yearly average return of -20.3% and a 17.5% success rate. Ramakanth has a -29.6% average return when recommending ADXS, and is ranked #3602 out of 3645 analysts.
As of this writing, all the 4 analysts polled by TipRanks rate Advaxis Inc stock a Buy. With a return potential of 151.2%, the stock’s consensus target price stands at $31.25.
Catalyst Pharmaceuticals Inc
Roth Capital analyst Scott Henry reiterated a Buy rating on shares of Catalyst Pharma, with a $7 price target, following the news that the company has completed the rolling submission of a New Drug Application (NDA) to the FDA for Firdapse to treat Lambert Eaton myasthenic syndrome (LEMS) and congenital myasthenic syndromes (CMS).
Henry commented, “The 60-day clock for FDA acceptance started yesterday, which indicates an acceptance decision around February 16th. The company requested priority review (as expected), and we expect a PDUFA date for an FDA response around August 16th. Our launch expectations for Firdapse remain 4Q16.”
The analyst concluded, “We continue to expect CPRX to bring about the first approved treatment for LEMS. We further believe that shares are undervalued based on our approval probability assumption of 85%.”
According to TipRanks.com, analyst Scott Henry has a yearly average return of 10.1% and a 41.4% success rate. Henry has a -3.8% average return when recommending CPRX, and is ranked #320 out of 3645 analysts.