Maxim Group Reiterates Buy On Aeterna Zentaris Following Collaboration Agreement With Sinopharm A-Think


In a research report published today, Maxim Group analyst Jason Kolbert reiterated a Buy rating on Aeterna Zentaris (NASDAQ:AEZS) with a $2.00 price target. The report follows the news that the company and Sinopharm A-Think Pharmaceuticals signed an exclusive license and technology transfer agreement, for the Company’s lead anti-cancer compound, zoptarelin doxorubicin, for the initial indication of endometrial cancer, for the Chinese, Hong Kong and Macau markets.

Kolbert noted, “Zoptarelin doxorubicin data (interim analysis) in 2H15 represents a key event for the company. We believe that the incremental improvements to this standard of care agent should make it a low risk, high probability of positive outcome event.”

The analyst added, “We base our valuation on Zoptec. Our metrics (FCFF, EPS, and SOP) use a 30% discount rate point to a $2.00 valuation. Our metrics are now dependent on good interim data in mid-2015 for the Zoptec trial.”

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 4.9% and a 41.4% success rate. Kolbert has a -21.4% average return when recommending AEZS, and is ranked #752 out of 3388 analysts.

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