Rodman & Renshaw Encouraged on Rexahn Pharmaceuticals, Inc. (RNN) Following ASCO Update


Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN) offered a key glimpse into its advanced muscle invasive bladder cancer (MIBC) Phase 2a trial  at the American Society of Clinical Oncology conference over the weekend. In the first stage of the study, the biotech firm achieved the predefined efficacy criteria after evaluating 10 patients who found RX-3117 to be safe and well-tolerated, with 22% of patients realizing progression-free survival (PFS) for a six-month minimum.

In reaction, Rodman & Renshaw Joseph Pantginis sees beneficial opportunity for bladder cancer patients and is bullish on the firm’s pipeline drug, reiterating a Buy rating on shares of RNN with a $19.50 price target, which represents a 391% increase from current levels.

Pantginis notes, “While only stage 1 of this study, we believe it is important to point out that patients who have reached this stage of disease are usually limited to palliative or best supportive care. Therefore, we believe that these data point to a positive outcome to stage 2 of the study in an expanded number of patients.”

Finding “optimism for a population that has no other option,” the analyst elaborates, “We find it encouraging that a group of these patients have responded to RX-3117 by the PFS measure in addition to the two patients that experienced tumor size reduction between of 15% to 19% […] We believe these are encouraging results as this study remains ongoing and based on the late stage nature of the disease treated with monotherapy RX-3117.”

Looking ahead, “Regarding the next catalyst, we expect Phase 2a data for RX-3117 in metastatic pancreatic cancer in mid-2017, and while it is a risky indication, should deliver on early responses, in our belief,” concludes Pantginis.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, Joseph Pantginis is ranked #4,514 out of 4,575 analysts. Pantginis has a 29% success rate and faces a loss of 18.8% in his yearly returns. When recommending RNN, Pantginis forfeits 39.5% in average profits on the stock.

Additionally, Vernon Bernardino of FBR rates a Buy rating on Rexahn Pharmaceuticals stock with a price target of $14, which implies a nearly 253% upside from where the stock is currently trading.