OXiGENE Represents An Undervalued Player With Significant Upside, Says H.C. Wainwright

In a research report released yesterday, H.C. Wainwright analyst Reni Benjamin reiterated a Buy rating on OXiGENE (OXGN) with a $6 price target, following the release of the company’s second-quarter financial results.

Benjamin wrote, “For 2Q14, OXiGENE reported a net loss of $(3.9) MM, or $(0.23) per share versus our net loss estimate of $(2.8) MM, or $(0.13) per share. Operating expenses for the quarter included $2.2 MM for R&D, and $1.7 MM for SG&A, significantly higher than our estimates of $1.4 MM and $1.3 MM, respectively, primarily due to increased manufacturing costs of Zybrestat for pending clinical trials”.

The analyst continued, “OXiGENE’s leading drug candidate, Zybrestat (fosbretabulin), is a Vascular Disrupting Agent (VDA) currently in Phase 2 development in ovarian cancer and seeking guidance from the EMA regarding the completed trial in anaplastic thyroid carcinoma (ATC). Based on positive safety and efficacy clinical trial results to date, we believe Zybrestat could become approved for both indications by 2019. With important clinical data from ongoing studies to be announced in the next 12 months, the potential for a partnership, and $36.3 MM in cash, we believe OXiGENE represents an undervalued player with significant upside for the long-term investor”.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Reni Benjamin has a total average return of -0.3% and a 39.4% success rate. Benjamin has a -11.2% average return when recommending OXGN, and is ranked #2443 out of 3206 analysts.

To read more rating news on OXGN click here.


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