Analyst Looks Beyond Sophiris Bio Inc (SPHS) Completed Phase 2b Enrollment to Large Opportunity Awaiting in Prostate Cancer Market

Maxim's Jason Kolbert is betting on SPHS to "unlock" share value with prostate cancer asset topsalysin.


Sophiris Bio Inc (NASDAQ:SPHS) revealed it has wrapped up enrollment in its Phase 2b trial to test both the safety and tolerability of topsalysin in treating men with clinically significant localized prostate cancer. Investors are likewise stirred up with the news of completed enrollment for the study targeting 40 patients, sending shares flying 8% today. Whereas the SPH team will evaluate safety and tolerability over a period of 26 weeks following treatment, efficacy will be assessed at the 24 week-marker through biopsy and imaging.

Could Sophiris’ prostate cancer asset become the “new paradigm in the physician PC armamentarium?” Maxim analyst Jason Kolbert says yes, reiterating a Buy rating on SPHS stock with a price target of $6, which implies a 170% increase from where the stock is currently trading. (To watch Kolbert’s track record, click here)

“Sophiris expects biopsy data from all patients dosed with the first administration of topsalysin to be available in the first half of 2018. The Phase 2b study includes an option to re-treat patients with a second dose of topsalysin, with a targeted biopsy to occur 24 weeks following the second dose. The company expects to have complete data on all patients who receive a second dose in the fourth quarter of 2018, assuming enrollment is completed as expected,” the analyst highlights.

When looking at the prostate cancer market, the analyst recognizes a promising playing field for SPHS. “The opportunity is large, with 80% of the 220,800 new cases of prostate cancer in the U.S. being localized disease,” adds Kolbert.

Spotlighting the prostate asset as a driver that could unlock share value for the drug maker, Kolbert concludes on a bullish note: “The P2b study will build upon the POC data demonstrated in P2a, but in this study we will also see if the response is enhanced by a second dose (and more time), as well as optimized delivery. Given the opportunity in PC, we believe Sophiris can unlock the value associated with topsalysin.”

TipRanks points to a unanimous initial bullish word on the Street circling Sophiris, with all 3 analysts polled in the last 12 months rating a Buy on the biotech stock. With a return potential of nearly 193%, the stock’s consensus target price stands at $6.00.

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