Bullish Sentiment In Akari Therapeutics PLC (ADR) (AKTX) Reverses; Chardan Sees 63% Downside for the Stock
After a 200% rally in less than a month, Akari Therapeutics PLC (ADR) (NASDAQ:AKTX) shares tumbled nearly 15% today. The reason? The drug maker presented this morning disappointing phase II results from its COBALT study of coversin, a tick-derived protein inhibitor of complement 5 (C5), for the treatment of paroxysmal nocturnal hemoglobinuria (PNH) at the company’s R&D Day in NYC.
In reaction, Chardan analyst Madhu Kumar reiterated a Sell rating on shares of Akari with a $6.5 price target, which represents a potential downside of 63% from where the stock is currently trading.
Kumar commented, “In our view, the data presented from the 4 phase II patients in COBALT does not provide clear support for coversin’s competitive profile in PNH […] In particular, we highlight that suppression of LDH below 1.5 x ULN is clinically meaningful, as this degree of LDH reduction is associated with reduced risk of both thromboembolism (blood clot formation) and mortality. Taken as a whole, we find coverin’s phase II results to be arguably non-competitive with Alexion’s approved and late-stage asset in PNH.”
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Madhu Kumar has a yearly average return of -14.8% and a 42% success rate. Kumar has a -69.8% average return when recommending AKTX, and is ranked #4353 out of 4557 analysts.