CTI BioPharma Reiterated With A Buy At H.C. Wainwright


In a research note issued this morning, H.C. Wainwright reiterated coverage with a “Buy” rating on CTI BioPharma Corp. (CTIC), and a price target of $6.00 a share, based on a discounted revenues and earnings per share valuation methodology.

Yesterday, CTI BioPharma announced the initiation of a randomized Phase 2 trial evaluating tosedostat in combination with low-dose cytarabine in elderly AML or MDS patients. CTI BioPharma’s core biotechnology franchise is comprised of pacritinib, a novel JAK2/FLT-3 inhibitor, currently in Phase 3 clinical trials and partnered with Baxter International (BAX) as well as an approved chemotherapeutic, Pixuvri®, marketed in Europe for the treatment of third-line aggressive non-Hodgkin’s Lymphoma.

H.C. Wainwright Dr. Reni Benjamin believes that with a solid portfolio of late-stage assets, multiple near-term drivers including top-line Phase 3 PERSIST-1 trial data by 4Q14/1Q15, and a cash position of $51 MM, CTI BioPharma remains undervalued with significant upside for the long-term investor.

According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, Dr. Reni Benjamin, who covers CTIC, has a one-year average return of +10.1% and a 36% success rate.

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