Sophiris Bio (SPHS) Stock Suffers, But Bullish Analyst Sees Potential Ahead

Earlier this week, Sophiris Bio (SPHS) released data from its Phase 2b trial for Prostate Cancer medication called “Topsaylysin,” and it didn’t exactly elicit the results some hoped for. As a result, investors are scrambling for the exits.

However, H.C Wainwright’s Joseph Pantginis is sticking to his bullish thesis on the stock, reiterating a Buy rating with a price target of $10, showing a potential upside of a whopping 726%. (To watch Pantginis’ track record, click here)

While patients had safe and tolerable reactions to the drug, no additional clinical benefit was observed — only 27% of patients experienced tumor removal.  Pantginis notes that though patients who did not respond were offered a second dose, many still did not see any improvement. While the analyst says this is disappointing, he suggests the positive safety data in tandem with the efficacy observed after one single injection still provides enough motivation to continue preparations for Phase 3 and for an FDA + EMA approval in early 2019.

“As stated by several KOLs including Professor Mark Emberton, Principal Investigator of the Phase 2b study, participating as a guest speaker in yesterday’s management call, the results obtained with topsalysin support the premise that patients responding to treatment could avoid or delay alternative therapies, for their localized, low-to-intermediate risk prostate cancer. Recall that watchful waiting is not the optimal option for this patient population; however, comorbidities and negative changes in quality of life associated with both radiation therapy and surgery, often diminish the benefits obtained with these treatments options. Therefore, a safe and effective alternative, such as the localized delivery of topsalysin, could provide a valid strategy for this specific high unmet need in the treatment of prostate cancer,” Pantginis explains.

Many patients who had more aggressive treatments and surgeries reported experiencing serious side effects: like the inability to have sex as well as urinary incontinence. The full set of data from the Phase 2b study is expected to be presented either in spring meetings or in the fall. Additionally, many who had operations said they regretted it due to the side effects they deal with.

“We believe that the safety profile may allow it to carve out a niche between noninvasive therapeutic options and invasive surgical options, while also reducing or preventing the off-target effects,” Pantginis asserted.

Overall, the Street remains unfazed as TipRanks analytics exhibit SPHS as a Strong Buy. Out of 3 analysts polled by TipRanks in the last 3 months, all 3 are bullish on Sophiris Bio stock. With an unrealistic upside of 534%, the stock’s consensus target price stands at $7.67. (See SPHS’s price targets and analyst ratings on TipRanks)


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