Healthcare analysts came out today with research notes on a handful of biotechnology and medical stocks. Among the equities in focus are cancer therapeutics firm Galena Biopharma Inc (NASDAQ:GALE), biotechnology company XOMA Corp (NASDAQ:XOMA), liquid biopsy firm TrovaGene Inc (NASDAQ:TROV) and specialty pharmaceutical company Zogenix, Inc. (NASDAQ:ZGNX).
Galena Biopharma Inc
Maxim analyst Jason McCarthy reiterated a Buy rating on shares Galena Biopharma, with a price target of $4.00, after the company reported fourth-quarter financials and provided investors with an update on its clinical progress.
McCarthy observed, “Our focus is on NeuVax. The pivotal phase III study “PRESENT” is now approaching the halfway mark of 70 events, expected in the coming weeks. An Independent Data Monitoring Committee (IDMC) will evaluate interim safety and conduct a futility analysis (2Q). The final data is expected in 2018 at 141 events.”
“As NeuVax continues to advance in multiple breast cancer studies, we should see incremental catalysts including the interim look at the PRESENT trial. Investors should consider the big picture for Galena, preventing recurrence in breast cancer, for which there are no therapies (women usually have to watch and wait). NeuVax could be the answer,” the analyst continued.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason McCarthy has a total average return of -14% and a 27% success rate. McCarthy has a -22.2% average return when recommending GALE, and is ranked #3600 out of 3700 analysts.
Out of the 5 analysts polled by TipRanks, 4 rate Galena Biopharma stock a Buy, while 1 rates the stock a Hold. With a return potential of 380%, the stock’s consensus target price stands at $4.20.
Wedbush analyst Liana Moussatos reiterated an Outperform rating on shares of Xoma, while slashing the price target to $3.00 (from $6.00), due to the termination of the company’s Phase 3 trial in pyoderma gangrenosum.
Moussatos noted, “Gevokizumab is officially shelved, but could still hold value as an outlicensed product candidate. Xoma announced termination of the Phase 3 trials of gevokizumab in pyoderma gangrenosum (PG). An interim look at the data showed no signs of clear efficacy, making it unlikely the trial would have achieved its primary endpoint. Xoma is currently seeking to out-license the asset and we view this as a call option. To be conservative, we have fully removed gevokizumab from our model, reducing our PT from $6 to $3.”
The analyst continued, “Xoma 358 is now front and center, with potential release of proof-ofconcept data around mid:16. Xoma is currently enrolling patients at two leading centers for its CHI study. While data could be released in mid:16, Xoma reiterated plans to only release data when a consistence dose response is observed. We look for a clear sign of efficacy to support moving the program forward.”
According to TipRanks.com, analyst Liana Moussatos has a total average return of 3.1% and a 33.5% success rate. Moussatos has a -36.6% average return when recommending XOMA, and is ranked #718 out of 3700 analysts.
Cantor analyst Bryan Brokmeier continues to recommend investors buy shares of TrovaGene following the company’s fourth-quarter results. The analyst reiterated a Buy rating on the stock, with a price target of $10, which implies an upside of 91% from current levels.
Brokmeier wrote, “4Q:15 commercial sample volume was up more than 300% sequentially to 312, from 100 samples in 3Q:15. Moreover, the company reports that as of the end of February, the ratio of clinical samples to Clinical Experience Program (CEP) samples is 3-to-1, from 1.3-to-1 in 4Q:15, demonstrating continued market adoption. This is further demonstrated by the addition of another 60 physicians to the 240 signed up at the end of September 2015, despite only having one sales rep at the beginning of 4Q:15 (now at eight, including two sales managers). Moreover, we’re encouraged by the company’s plan to submit nine manuscripts for publication in 2016, including three already submitted, which along with data to be presented at AACR, ASCO and other conferences, should provide the company with a leading clinical performance position.”
According to TipRanks.com, analyst Bryan Brokmeier has a total average return of 9% and a 58% success rate. Brokmeier has a 51.5% average return when recommending TROV, and is ranked #391 out of 3700 analysts.
Finally, Brean Capital analyst Difei Yang reiterated a Buy rating on shares of Zogenix, with a price target of $28, after the company released fourth-quarter results, posting revenue of $6.1 million, compared to consensus estimate of $6.4 million. Non-GAAP EPS was ($0.36) vs. consensus of ($0.69).
Yang observed, “Zogenix met expectations. It slightly missed Q4 revenues, but beat non-GAAP EPS by $0.33. Key catalysts are Phase III read-outs/NDA filing of ZX008 in late 2016/2017 respectively. We like Zogenix for its longitudinal clinical data on Dravet patients. We believe the current valuation is not giving the company proper credit for its de-risked ZX008 asset. The current share price appears to imply a 30% probability of success while a compound at a similar development stage typically has a success rate of 60-70%.”
According to TipRanks.com, analyst Difei Yang has a total average return of -21% and a 25% success rate. Yang has a -20.4% average return when recommending ZGNX, and is ranked #3680 out of 3700 analysts.
Out of the 4 analysts polled by TipRanks, 3 rate Zogenix stock a Buy, while 1 rates the stock a Hold. With a return potential of 198.5%, the stock’s consensus target price stands at $25.67.