Healthcare analysts at Roth Capital and Cantor weighed in today with a few insights on the biotech company Galena Biopharma Inc (NASDAQ:GALE) and specialty pharma company Depomed Inc (NASDAQ:DEPO). The analysts reflect on Galena’s agreement to settle federal class action, and Depomed’s opportunity in 2016.
Galena Biopharma Inc
Roth Capital analyst Joseph Pantginis reiterated a Buy rating on shares of Galena Biopharma, with a $6 price target, after the company announced that it has reached an agreement in principle to settle both the consolidated putative federal class action, In Re Galena Biopharma, Inc. Securities Litigation, and the federal consolidated derivative action, In Re Galena Biopharma, Inc.
Pantginis wrote, “It is important that GALE is taking a major step forward in putting this dark spot in the company’s history behind it. It also follows recent moves by the company in refocusing on its core proficiency of immunotherapy with the discontinuation of Abstral and Zuplenz.”
The analyst continued, “The next catalyst for the company will be on Monday at ASH with final data from the Phase II study of ‘401 in thrombocythemia; secondary to myeloproliferative neoplasms will be presented at ASH in December. The ORR in the abstract is the same as the one reported at EHA and so we wait for the poster presentation to receive more data on duration of responses as well as any updates to the AE profile. The target product profile of GALE-401 is increased tolerability compared to Anagrelide IR while maintaining efficacy, which could allow patients to achieve target platelet levels potentially enabling treatment expansion to larger and younger patient groups. Driving this potential is the pharmacokinetic profile of GALE-401.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joseph Pantginis has a yearly average return of -3.0% and a 38% success rate. Pantginis has a -26.7% average return when recommending GALE, and is ranked #3430 out of 3631 analysts.
Out of the 7 analysts polled by TipRanks, 6 rate Galena Biopharma stock a Buy, while 1 rates the stock a Sell. With a return potential of 197.3%, the stock’s consensus target price stands at $4.40.
In addition, Cantor analyst Chiara Russo was out pounding the table on Depomed, reiterating a Buy rating and price target of $29, which represents a potential upside of nearly 60% from where the stock is currently trading.
Russo stated, “With the recent resolution to the unsolicited Horizon bid for DEPO, we decided to go back and revisit our DEPO model. Looking ahead to 2016, we believe that DEPO will be a compelling opportunity as we believe it will continue to expand top-line numbers, produce meaningful cash flow and avoid some of the headline risk that has plagued some of the larger pharmaceutical companies. Our model updates include revenue, R&D as well as more significant SG&A adjustments. This brings us more in line with current Street estimates for 2016; however, we do note that DEPO has historically provided next year guidance with YE reporting.”
According to TipRanks.com, analyst Chiara Russo has a yearly average return of -3.2% and a 30% success rate. Russo has a 14.2% average return when recommending DEPO, and is ranked #2800 out of 3631 analysts.
As of this writing, 6 analysts are bullish on Depomed and one is neutral. According to TipRanks, the average 12-month price target on the stock is $29.57, marking a 63% potential upside from Friday’s closing price.