Liana Moussatos of Wedbush rates stocks in the biotechnology sector and is one of the top 50 analysts rated on TipRanks. Today, Moussatos reiterated ratings for the biotechnology companies XOMA Corp (NASDAQ:XOMA) and Sangamo Biosciences, Inc. (NASDAQ:SGMO). The analyst reflects on XOMA’s recent agreement with Novo Nordisk, and Sangamo’s Investigational New Drug (IND) application, which has been approved by the FDA.
In a research report published Wednesday, Moussatos reiterated an Outperform rating on shares of Xoma, with a $6.00 price target, after the company announced a license agreement with Novo Nordisk for the XMetA antibodies for diabetes.
Moussatos noted, “We consider this event to be positive as it provides nondilutive financing for the company while allowing the XMetA program to be developed by one the industry leaders in diabetes, Novo Nordisk. According to the agreement, Novo Nordisk acquires global rights to XMetA for the treatment of diabetes, while Xoma keeps commercialization rights for XMetA for rare diseases and receives $5MM in upfront cash and is eligible to receive up to $290MM in additional potential development, regulatory and commercial milestones and tiered royalties. As a reminder, XMetA is a partial agonist of the insulin receptor shown in preclinical models to mimic the glucose regulatory function. In a relevant animal model, XMetA administration led to a decrease in hyperglycemia without hypoglycemia and weight gain.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Liana Moussatos has a total average return of 22.3% and a 48.2% success rate. Moussatos has a -13.7% average return when recommending XOMA, and is ranked #40 out of 3644 analysts.
Out of the 7 analysts polled by TipRanks, 6 rate Xoma stock a Hold, while 1 rates the stock a Buy. With a return potential of 72.5%, the stock’s consensus target price stands at $2.45.
Sangamo Biosciences, Inc.
In addition, Moussatos reiterated an Outperform rating on shares of Sangamo Biosciences, with a price target of $30, after the company announced FDA acceptance of its IND application for SB-FIX-1501 for the treatment of Hemophilia B.
Moussatos stated, “We consider this announcement a positive milestone and look forward to the initiation of the Phase 1 /2 trial and potential data readout in 2016. The trial is a dose-escalation study designed to enroll nine males >18 years of age, with severe Hemophilia B, who have no inhibitors to Factor IX and have no hypersensitivity to recombinant Factor IX. We believe positive results in this trial could bode well for the remaining disease indications in Sangamo’s In Vivo Protein Replacement Platform program.”
Moussatos has a -23% average return when recommending SGMO, according to TipRanks.
As of this writing, all the 5 analysts polled by TipRanks rate Sangamo Biosciences stock a Buy. With a return potential of 118%, the stock’s consensus target price stands at $20.50.