Sophiris Bio Inc (SPHS): Phase 2b Trial One Step a Way to Take Off


Drug maker Sophiris Bio Inc (NASDAQ:SPHS) released its earnings report for the first quarter of 2017 and is one step closer to beginning Phase 2b for its lead drug PRX302, a treatment intended for the localisation low-intermediate risk for prostate cancer. In reaction, Rodman & Renshaw analyst Joseph Pantginis reiterates a Buy rating listing a price target of $6, which represents an upside of roughly 126% compared to where the shares last closed.

For the first quarter of the year 2017, the biotech company reported EPS of ($0.09), in line with the analyst’s and the street’s expectations. The drug maker reaches a balance of $25.7M in cash account, which is a buffer that will come in handy until the end of Phase 2b for its leading asset PRX302.

Sophiris’ management announced five clinical sites are already in place and waiting for patients in both the U.S. and in the U.K., and will shortly update on more. According to the analyst, there is “one last piece of housekeeping, then Phase 2b can start enrolling,” as soon as Sophiris gets final regulatory clearance for PRX302 diluent. The analyst believes clearance can be expected within the month, as this “represents only a minor delay to enrolling patients and has no impact on our projected timelines and valuation.” Pantginis adds, “We believe that this is due to seeking an extension of the shelf life for the diluent.”

“We believe the study is likely to deliver clinically meaningful responses and act as a significant driver for the shares,” concludes the analyst.

As usual, we suggest taking analysts’ recommendations with a grain of salt. According to TipRanks, a financial engine that measures and ranks analysts’ and bloggers’ performance, Joseph Pantginis is ranked #4515 out of #4572 analysts. Pantginis has a 30% success rate and generates an annual yield of -18.5%. When recommending SPHS, the analyst earns a -8.9% average profit on the stock.

TipRanks analytics exhibit SPHS as a Buy. Out of 4 analysts polled by TipRanks in the last 12 months, all 4 are bullish on Sophiris stock. The 12-month average price target stands at $6.00, marking a 140% upside from where the stock is currently trading.