Rodman & Renshaw Initiates Buy on Sophiris Bio Inc (SPHS), Sees 113% Upside for the Stock


Sophiris Bio Inc (NASDAQ:SPHS) shares are rising almost 17% on back of Rodman & Renshaw analyst Joseph Pantginis initiating coverage on SPHS with a Buy rating and a price target of $6, which implies a just under 113% upside from where the stock is currently trading. The analyst places a big vote of confidence in the biotech firm’s key drug candidate PRX302 (topsalysin), developed to treat diseases of the prostate, specifically localized prostate cancer, and benign prostate hyperplasia (BPH).

From the eyes of Pantginis, “PRX302 forging a potentially powerful commercial profile in delaying or even preventing more radical prostate procedures […] We believe that a key investment driver for the product is that it could provide a powerful new option to patients in either category by delaying or even preventing more aggressive treatments […] We believe that the PRX302 safety profile and activity towards these two conditions thus far may allow it to carve out a niche between noninvasive therapeutic options and invasive surgical options. Further, a localized treatment like PRX302 may increase overall safety and prevent off target effects, all within the physician’s office setting.”

Not only is the drug “carving out a niche between oral drugs and surgery for BPH,” the analyst especially likes that “one of two positive Phase 3’s [is] in the bag already.”

Additionally, “While many drugs tout the concept of targeting, PRX302 brings it to another level, in our belief, with a keen focus on the prostate,” continues Pantginis.

Seeing a strong prostate-targeted treatment option on the table for the firm, the analyst concludes cheering Sophiris’ compelling clinical and commercial prospects, as he believes, “Localized prostate cancer drives current value proposition with proof-of-concept in hand.”

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, Joseph Pantginis is ranked #4,442 out of 4,517 analysts. Pantginis has a 32% success rate and faces a loss of 15.6% in his annual returns. When suggesting SPHS, Pantginis forfeits 13.7% in average profits on stock.

Additionally, Charles Duncan of Piper Jaffray rates a Buy on SPHS with a $7 price target, which represents a 148% increase from where the shares last closed; Jason Kolbert of Maxim rates a Buy with a $6 price target, which represents a nearly 113% increase from where the shares last closed; Douglas Loe of Echelon rates a Buy with a $5 price target, which represents a 77% increase from where the shares last closed.

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