Analysts chime in on the volatile news that has led both Aptose Biosciences Inc (NASDAQ:APTO) and Fluidigm Corporation (NASDAQ:FLDM) shares to plunged on back of an FDA clinical hold setback and struggles exhibited in a third-quarter preannouncement, respectively. Yet, both analysts maintain positive viewpoints on the stocks despite the current negative investor sentiment. Let’s take a closer look:
Aptose Biosciences Inc
Aptose shares are stumbling 14% today after the FDA is maintaining clinical hold for the biotech firm’s Phase 1b trial of APTO-253 in AML cancer, and requests Good Manufacturing Practice (GMP) level Chemistry, Manufacturing, and Control (CMC) data.
Canaccord analyst John Newman views this news as “encouraging,” considering the firm had already indicated intentions to provide this data to the agency moving forward. Moreover, Newman adds that worthy of note is that the FDA did not require any additional animal data or toxicity work, both of which are requests that would have been more time-consuming.
Therefore, despite the “minor setback,” the analyst reiterates a Buy rating on shares of APTO with a $7 price target, which represents just under a 192% increase from where the stock is currently trading.
The analyst believes, “While, we would have liked to see the clinical hold removed today, we believe the FDA’s request for standard CMC information on the final clinical supply, which the company has seen no issue with to date, should be a quick and straightforward one to satisfy.”
“Given the nature of this clinical hold, we expect FDA to remove the clinical hold upon receiving CMC information through an amendment to the IND, and look forward to further updates in the coming months. We also expect to see an IND filing in mid-2017 for CG-806, though we currently assume a conservative stance which does not include CG-806 in our valuation, despite pipeline potential we see in this asset,” Newman contends, seeing a 25% probability of approval for the drug, and projects peak U.S. sales circling $290 million by 2023, “discounted back at 17%.”
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst John Newman is ranked #4,066 out of 4,182 analysts. Newman has a 35% success rate and faces a loss of 11.5% in his annual returns. When recommending APTO, Newman loses 32.6% in average profits on the stock.
TipRanks analytics demonstrate APTO as a Buy. Based on 2 analysts polled in the last 3 months, 100% rate a Buy on APTO. The 12-month price target stands at $7.50, marking a nearly 209% upside from where the shares last closed.
Fluidigm shares have been sent crashing almost 31% today on the heels of last night’s third-quarter preannouncement revealing an instrument revenue shortfall, which management believes is a reflection of Helios sales underperforming expectation.
Despite the company’s evident challenges, Cantor analyst Bryan Brokmeier maintains optimism in that it “remains uniquely positioned,” and therefore reiterates a Buy rating on FLDM while trimming the price target from $11 to $9, which represents a 78% increase from where the shares last closed.
The analyst explains, “We remain concerned that the company may be seeing continued weakness in both BioMark and C1 instrument sales. Moreover, consumable & service revenues were $2.1M below our forecast, indicating potentially low utilization by both the C1 and the Applied business. That said, shares are down significantly over the last three months but we continue to believe that our long-term view of the company is intact.”
Ultimately, “We believe our valuation is warranted given our view that the company’s strong patent portfolio and first-mover advantage in the rapidly growing field of single-cell biology position the company for double-digit organic growth once it overcomes current near-term operational challenges,” Brokmeier concludes.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, four-star analyst Bryan Brokmeier is ranked #736 out of 4,182 analysts. Brokmeier has a 50% success rate and earns 5.0% in his yearly returns. When recommending FLDM, Brokmeier garners 1.3% in average profits on the stock.
TipRanks analytics exhibit FLDM as a Buy. Based on 2 analysts polled in the last 3 months, 100% rate a Buy on FLDM. The consensus price target stands at $10.50, marking a 107% upside from where the stock is currently trading.