MLV Reduces Neostem Price Target As NBS10 Shows A Mortality Benefit But May Require Further Study


In a research report issued today, MLV analyst Vernon Bernardino maintained a Buy rating on Neostem (NASDAQ:NBS) but reduced his price target to $14 (from $17), which still represents a potential upside of 176% from where the stock is currently trading. The report comes as the company presented its analysis of results from PreSERVE-AMI, a phase 2 clinical trial evaluating NBS10 as a treatment for heart attack.

Bernardino commented: “The study did not meet its original primary endpoint (1EP) of improvement in cardiac perfusion, but did meet a 1EP in MACE, a mortality benefit at one-year after treatment with NBS10 vs. placebo (p<0.05), which is a more clinically meaningful result for demonstrating NBS10’s efficacy.”

The analyst added, “We look next for NBS10’s evaluation in a Ph 2b/3 study, with the 2b component dose-confirmatory, and a pivotal component incorporating MACE. Thus, we remain positive and believe NBS10 will advance but take longer to gain approval (now est. 2022 vs. our prior 2020). We therefore reiterate our BUY recommendation but lower our PT to $14, from $17, to reflect the change in projected NBS10 year of approval.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vernon Bernardino has a total average return of 17.1% and a 11.1% success rate. Bernardino has a -39.9% average return when recommending NBS, and is ranked #775 out of 3377 analysts.

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