Maxim Group Maintains Buy On Cesca Therapeutics, Sees 400% Upside For Stock
In a research report released today, Maxim Group analyst Jason Kolbert maintained a Buy rating on Cesca Therapeutics (NASDAQ: KOOL) with a $7 price target, which represents an upside of 400% from where the stock is currently trading.
Kolbert wrote, “Cesca Therapeutics hits a regulatory sweet spot: control. Cell harvesting, handling, and formulation naturally introduce huge variations in cell products that are delivered back into the patient, greatly impacting clinical outcome. KOOL has engineered external variables with proprietary technologies and protocols to control all aspects of cell handling and formulation. Each SurgWerks kit is tailored for a specific indication to control everything from cell density, dosing, and viscosity to ancillary drugs and diagnostics at the point of care. Targeting indications with autologous stem cell-based “combination products” positions KOOL for fast regulatory approval and early investor returns, in our view. SurgWerks processes have been proven in 600 patients to date, spanning all six indications, and multiple pilot and Phase I/B trials have concluded or are set to conclude in 2014. The company is seeking IDE approval in 2014 for Phase II (pivotal) trials for CLI and AMI. CLI may represent a rapid pathway to the market. We believe that the company, with one modest pivotal trial (we assume 200 patients; 20% ex-US, probably from India, leveraging local CRO capabilities), can get to the marketplace. We envision an open-label, controlled study (we assume it’s 80% powered for 20% efficacy assumption) in Rutherford 5, no-option CLI patients. Given the fact that these patients are facing amputation, have essentially no alternative, and can get immediate treatment (no waiting, no extended processing time) without a “placebo” arm, we believe that enrollment will occur more quickly than other CLI trials (which had enrollment problems). If results are good, Cesca is ideally positioned to deliver a cost-effective, point-of-care therapy and be among the first commercialized products in the cell therapy space as a result of the unique clinical pathway.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of 17.3% and a 64.3% success rate. Kolbert has a -17.1% average return when recommending KOOL, and is ranked #113 out of 3263 analysts.