H.C. Wainwright Sees 230% Upside Potential For Sophiris Bio Inc (SPHS) As Prostate Cancer Drug Enters Phase 2b Trial


Analyst Joseph Pantginis of H.C. Wainwright is optimistic regarding the pace of Sophiris Bio Inc’s (NASDAQ:SPHS) Phase 2b study on its lead asset PRX302, which aims to cure localized prostate cancer. The analyst notes the two primary stock drivers for Phase 2b are “six-month biopsy data for all patients in 1Q18; and 2) complete data for all patients, including recipients of second doses by 4Q18.”

Pantginis believes that “the Phase 2a results presented in June 2016 as well as the detailed data gathered during the clinical study, including video of the injections, have been used as a guide for the design of the Phase 2b study underway. Suboptimal dosing and inconsistent delivery methods have been addressed, which we believe should help deliver clinically meaningful responses. We find the Phase 2a results encouraging as a 50% response to PRX302 was observed, which included complete and partial ablation of target tumor tissue. Ultimately, should the Phase 2b data be positive, which we project, we believe that PRX302 could be firmly on the path to presenting patients with a powerful new option, including the sparing of more radical interventions.”

Phase 2b began in June with the treatment of 40 patients, but data will not be available until the first quarter of 2018. A successful treatment necessitates “absence of clinically significant lesions in the treatment target area after six months” says Pantginis.

For the second quarter, the biotech firm yielded an earnings beat, bringing in EPS of $0.02, which outclassed consensus of ($0.09). Moving ahead, Pantginis expects that Sophiris’ current cash balance of $24 million will be sufficient to complete its Phase 2 b trial by the end of 2018.

The analyst reiterates a Buy rating on SPHS stock with a $6.00 price target representing a near 230% increase over current trading levels. (To watch Pantginis’s track record, click here)

TipRanks analytics demonstrate SPHS as a Strong Buy. Out of 3 analysts polled by TipRanks in the last 3 months, all 3 are bullish on Sophiris stock. With a potential upside of 213%, the stock’s consensus target price stands at $5.67.