Maxim Group Reaffirms Buy On Cesca Therapeutics Following Collaboration Agreement With Fortis
In a research note published yesterday, Maxim Group analyst Jason Kolbert reaffirmed a Buy rating on Cesca Therapeutics (KOOL) with a $7 price target, on the heels of Cesca’s and Fortis Healthcare’s recent collaboration agreement. From this agreemenent, Cesca will continue to have access to this prominent hospital complex and CRO, which should help support their US FDA clinical trial programs, as well as support the commercial business.
Kolbert noted, “The scope of services now provides for specific regenerative medicine programs, including cord blood banking services, point-of-care autologous cell therapy products and services, hematopoietic stem cell therapy services (i.e., both autologous and allogeneic bone marrow transplants), and oncological cellular therapy services”.
The analyst continued, “We believe that the company, with one modest pivotal trial, can get to the marketplace. We envision an open-label, controlled study (we assume 80% powered for 20% efficacy assumption) in Rutherford 5, no-option CLI patients. Given the fact that these patients are facing amputation, have essentially no alternative, and can get immediate treatment (no waiting, no extended processing time) and no “placebo” arm, we believe that enrollment can occur quickly versus other CLI trials, which had enrollment problems. If results are good, Cesca is ideally positioned to deliver a cost-effective, point-of-care therapy and be among the first commercialized products in the cell therapy space as a result of the unique clinical pathway”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of 6.1% and a 56.2% success rate. Kolbert has a -33.0% average return when recommending KOOL, and is ranked #618 out of 3205 analysts.
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