Shares of Sophiris Bio Inc (NASDAQ:SPHS) surged by more than 90% today as a result of positive results from its mid-stage trial. The company announced the biopsy results from its 18-patient Phase IIa proof-of-concept trial evaluating the firm’s lead intratumoural injection of its prostate gland-targeted proaerolysin protein-based biologic topsalysin in patients with localized prostate cancer.
Analyst Douglas Loe of Echelon Wealth Partners (formerly Euro Pacific Canada) commented, “We are maintaining our positive scientific views on topsalysin’s medical potential in localized prostate diseases and with final Phase I/II data from the 18-patient localized prostate cancer study now as positive as interim data had been, this does justify further Phase II testing pending available capital. We are of course aware of the firm’s constraints, given how the firm did after all retain counsel to evaluate strategic alternatives. But with yesterday’s results now in hand, we are confident the firm can indeed identify interested partners to further the development of topsalysin in such markets.”
Loe reiterated a Speculative Buy rating on shares of Sophiris, with a $5.00 price target, which represents a potential upside of 133% from where the stock is currently trading. The analyst noted, “Our revised PT still corresponds to a one-year return of 327%, while substantial is still without risk as all of our projected topsalysin royalty revenue projections incur substantial financial risk until future (and necessary) topsalysin clinical programs are fully-funded.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Douglas Loe has a yearly average return of 22.9% and a 33% success rate. Loe is ranked #1767 out of 3990 analysts.