Aeterna Zentaris: The Damage Is Done, Don’t Sell Now, Says Maxim

In a research report released Monday, Maxim Group analyst Jason Kolbert maintained a Buy rating on Aeterna Zentaris (NASDAQ:AEZS) but reduced his price target to $2 (from $6), which still represents a potential upside of 257% from where the stock is currently trading. The report comes as the company received a complete response letter from the FDA stating that the Macrilen clinical trial submitted in the new drug application – SPA did not support approval.

Kolbert noted, “We have removed Macrilen from our model. AEZS’s stock fell sharply and now trades at a negative enterprise value.” However, “Macrilen was never the critical value driver in our thesis. It was always Zoptec.” The analyst concluded, “The damage is done, and now we have to wait for data from the Zoptec trial. Good data should drive a valuation rebound. Based on Zoptec alone, we revise our target price to $2.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of 4.5% and a 42.1% success rate. Kolbert has a -55.5% average return when recommending AEZS, and is ranked #805 out of 3365 analysts.

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