Healthcare analysts weighed in on development-stage company Celldex Therapeutics, Inc. (NASDAQ:CLDX) and biopharmaceutical firm Mast Therapeutics (NYSEMKT:MSTX). The analysts reflect on Celldex’s recent presentation of positive preliminary clinical data on CDX-301, and completion of enrollment in Mast’s pivotal phase III “EPIC” study of vepoloxamer. Let’s take a closer look.
Celldex Therapeutics, Inc.
Analyst Boris Peaker of Cowen weighed in on Celldex following positive data regarding CDX-301, a hematopoietic cytokine that expands dendritic cells and hematopoietic stem cells. In its Phase 1 study, CDX-301 was evaluated in allogenic HSCT, a type of stem cell transplantation. The study indicated that “CDX-301 was effective at mobilizing stem cells prior to harvest and was well-tolerated. The composition of theharvested stem cells using CDX-301 compared to G-CSF control suggests improved cell mobilization for CDX-301.” Additionally, “there were no reports of complication from infections.” The analyst notes that the company will next study CDX-301 in combination with Mozobil, a treatment of non-Hodgkin’s lymphoma.
The analyst is also eagerly awaiting results from the 2nd interim of ACT IV, a study involving the treatment of glioblastoma, a type of brain cancer. He explains, “The results of the 2nd interim readout are imminent. We remind investors that while we believe there is the possibility of early stoppage, the most likely outcome is that the trial continues on as planned. This is a non-event in our opinion and is in no way indicative of the trial’s final outcome. We believe that at current valuation investors are significantly underestimating the probability of success for ACT IV.”
The analyst reiterated his Outperform rating on shares with a $28 price target. Boris Peaker has a 42% success rate recommending stocks with an average return of 13.1% per recommendation, according to TipRanks.
Mast Therapeutics Inc
Analyst Jason McCarthy of Maxim weighed in on Mast Therapies after the company has completed enrollment for its phase 3 “EPIC” study of vepoloxamer, used to treat sickle cell anemia. The analyst believes that “Mast remains on track to deliver top-line pivotal data in 2Q.” He continues, “The EPIC study is the largest placebo-controlled clinical trial in sickle cell disease (SCD) ever. Recall that vepoloxamer has a good safety profile and has been shown to reduce crisis duration and intensity in previous studies.” However, he predicts that “the launch ramp could be steep” as over 100,000 hospitalizations per year in the U.S. due to pain crises occur in less than 200 hospitals, with over 50% in top metro areas.
The analyst reiterates a Buy rating on shares with a $5 price target. He states, “Mast is continuing to march towards pivotal data. If approved, vepoloxamer would be only the second therapy approved for SCD and the only therapeutic that directly treats pain crisis. With a sub-$100M valuation and a phase III asset nearing the finish line we continue to see Mast as undervalued today.”
According to TipRanks.com, analyst Jason McCarthy has a yearly average return of -19.5% and a 23% success rate. McCarthy has a -33.6% average return when recommending MSTX, and is ranked #3565 out of 3638 analysts.
As of this writing, all the 5 analysts polled by TipRanks rate Mast Therapeutics stock a Buy. With a return potential of 999%, the stock’s consensus target price stands at $3.