Piper Jaffray Confident Aptevo Therapeutics Inc (APVO) Is Back on Track; Shares Soar 14%


Aptevo Therapeutics Inc (NASDAQ:APVO) shares are ascending 14% after the biotech firm announced that its Factor 9 replacement therapy IXINITY manufacturing activity is back with expectations to once again supply the market by the second quarter of 2017.

For Piper Jaffray analyst Joshua Schimmer, this is welcome news indeed, and he is encouraged that the company is starting 2017 on the right foot. As such, the analyst reiterates an Overweight rating on APVO with a $5 price target, which marks a 75% upside from current levels.

Schimmer notes, “Recall in its 3Q16 10Q, APVO announced this unexpected supply disruption of this newly launching product, which caused us to lower estimates and reduce our PT. It’s nice to see signs that the product is back on track and that the root cause has been identified and addressed. We look forward to additional updates and confirmation that the disruption has not negatively impacted the commercial outlook for the product. Reiterate OW as APVO appears to be one of the few ‘value’ stocks in biotech microcaps given its approved product portfolio and minimal EV.”

Ultimately, ” The short-acting Factor 9 “message” is that it gives patients greater control of their lives to engage in physical activity whenever they would like, as opposed to having to limit activities around trough levels of maintenance therapy. […]  Now that the root cause for product falling out of spec has been identified, APVO appears to be on a course to hopefully reestablish credibility with the community,” Schimmer concludes.

In the third quarter, APVO’s sales for IXNITY had brought in $3 million. The analyst awaits to determine whether the supply disruption can resume course full steam ahead.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, Joshua Schimmer is ranked #4,251 out of 4,351 analysts. Schimmer has a 37% success rate and loses 8.8% in his yearly returns. However, when recommending APVO, Schimmer earns 27.5% in average profits on the stock.APVO Chart