The biotech sector has had a cruel start to the year. The Nasdaq Biotechnology Index (IBB) is down 19% so far in 2016, and is now off about 30% since its July peak. Among the equities in focus today are biotech companies Sarepta Therapeutics Inc (NASDAQ:SRPT), Galena Biopharma Inc (NASDAQ:GALE), and Eleven Biotherapeutics Inc (NASDAQ:EBIO).
Sarepta Therapeutics Inc
RBC Capital analyst Simos Simeonidis downgraded shares of Sarepta Therapeutics from an Outperform to a Sector Perform rating, while slashing the price target to $15 (from $62), based on the conclusions drawn by the FDA in the eteplirsen briefing documents.
Simeonidis commented, “While we acknowledge the possibility of a much more favorable than anticipated panel, we view the overall tone of the documents and the opinions stated by the FDA as very difficult to overcome and successfully argue against.” The analyst continued, “Overall, these 20 points/ conclusions by the FDA reviewers paint an ominous picture for the fate of the eteplirsen NDA. While we know that FDA briefing documents almost always look much worse than the actual panel discussion, we believe that the number of negative opinions and conclusions, especially given the types of issues they’re addressing, will be very difficult to overcome.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Simos Simeonidis has a yearly average return of -31% and a 17.4% success rate. Simeonidis has a -61% average return when recommending SRPT, and is ranked #3542 out of 3582 analysts.
Out of the 15 analysts polled by TipRanks, 10 rate Sarepta stock a Buy, while 5 rate the stock a Hold. With a return potential of 203%, the stock’s consensus target price stands at $40.62.
Galena Biopharma Inc
Maxim analyst Jason McCarthy was out pounding the table on Galena Biopharma, reiterating a Buy rating and a $4.00 price target, which represents a potential upside of 463% from where the stock is currently trading.
McCarthy noted, “Galena’s vaccines are progressing in multiple clinical studies. In 2016, we should see incremental catalysts including the interim look at the PRESENT trial. Investors should consider the big picture for Galena (preventing recurrence) and the potential for each of its vaccines to be available to these markets.”
According to TipRanks.com, analyst Jason McCarthy has a yearly average return of -27.1% and a 6.4% success rate. McCarthy has a -56.3% average return when recommending GALE, and is ranked #3534 out of 3582 analysts.
Eleven Biotherapeutics Inc
Eleven Biotherapeutics shares are collapsing today, down around 77% at time of writing, due to disappointing phase 3 trial results for isunakinra, a protein-based topical therapeutic for the treatment of ocular surface inflammatory disorders.
In reaction, Leerink Swann analyst Jason Gerberry downgraded Eleven shares from an Outperform to a Market Perform rating, while no price target was provided.
Gerberry commented, “In its PR, EBIO indicated there is no pathway forward for EBI-005, leaving preclinical stage EBI-031 (macular edema) as the company’s lead asset. Given that EBI-031 has no clinical data or catalysts within an investable timeframe, we expect the stock to trade at or below its unrestricted cash value of $1.09 (after funding a collateral account to Silicon Bank). We estimate EBIO has sufficient cash to fund operations and advance EBI-031 through 4Q16.”
According to TipRanks.com, analyst Jason Gerberry has a yearly average return of -1% and a 44.3% success rate. Gerberry is ranked #2334 out of 3582 analysts.