Canaccord Maintains Buy on Sunshine Heart Inc Following FDA Approval Of COUNTER HF Protocol Amendment
Canaccord analyst Jason Mills weighed in today with a favorable report on Sunshine Heart Inc (NASDAQ:SSH), after the company announced that the FDA has approved an amendment to the stopping rule criteria for the Company’s COUNTER HF™ pivotal study for its C-Pulse Heart Assist System. The Agency has agreed to change this protocol from “all cause” deaths to specifically, mortality associated with device, procedure or therapy.
Mills commented: “We view the amendment to the stopping rule criteria – from “allcause” deaths to C-Pulse-related events – as a positive for the company and, coupled with the trial enhancements made earlier this year, increases the probability of favorable data for C-Pulse at the interim analysis time point. In the near term, we anticipate a return to the enrollment momentum experienced prior to the March 2015 study pause, and believe that enrollment updates for the balance of the year will act as positive catalysts for the stock.”
Bottom line: “We continue to take a positive view on the long-term potential of SSH’s platform to drive a paradigm change in the treatment of Class III heart failure, and if the study is able to achieve a positive outcome from the interim analysis – and the duration of the trial is reduced – we see additional upside to our current view.”
The analyst maintained a Buy rating on SSH stock, with a $5 price target, which implies an upside of 67% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Mills has a total average return of 1.9% and a 49.5% success rate. Mills has a -36.1% average return when recommending SSH, and is ranked #1303 out of 3743 analysts.