MLV Remains Positive on NeoStem Inc Ahead of First Patient Randomization in Intus

MLV analyst Vernon Bernardino weighed in today with a few insights on NeoStem Inc (NASDAQ:NBS), as the company is expected to announce randomization of the first patient this quarter in Intus, a Phase 3 study in malignant melanoma with its immunotherapy. NeoStem shares are currently trading at $2.67, down $0.04 or 1.48 percent.

Bernardino noted, “NBS20 in Ph 2 study demonstrated 2-yr survival of 72%, which compares very favorably vs. survival observed with current in-market therapies (16-33% – see more below). Recall also that we only assigned a 55% probability of FDA approval, which we believe appropriate for a therapy that has completed Ph 2 study.”

Furhtermore, “We therefore would consider initiation of Ph 3 (i.e., 1st randomization) as reason for analyzing our models. We also believe investors undervalue the promising 1-yr follow-up results from the PreSERVE Ph 2 study with NBS10, which were recently presented in March. We remain positive on NBS10 and are optimistic for its advancement into Ph 3 study in 2016.”

The analyst reiterated a Buy rating on NBS with a price target of $14, which implies an upside of 415% from current levels.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vernon Bernardino has a total average return of -10.9% and a 33.3% success rate. Bernardino has a -41.6% average return when recommending NBS, and is ranked #3492 out of 3568 analysts.


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