Companies in the Healthcare sector have received a lot of coverage today as analysts weigh in on Organovo Holdings (ONVO), BioMarin (BMRN) and Histogenics (HSGX).
Organovo Holdings (ONVO)
In a report issued on November 9, Sean Lavin from BTIG maintained a Buy rating on Organovo Holdings, with a price target of $3. The company’s shares closed on Friday at $1.14.
Lavin said:
“Control Remains A $3 PT F2Q19 revenue of $0.9M was in-line with consensus’ estimate though lighter than our $1.1M forecast. Near-term revenue continues to be lumpy given the nature of the business. Given ongoing changes to the company’s business strategy, we feel quarterly results remain prone to much volatility. Notably, the company again reinforced its commitment to advancing R&D efforts in the A1AT and rare disease space. Management continues to anticipate submission for its first IND filing in calendar 2020. On the second indication in the rare disease space (which was previously discussed), the company expects to provide a status update in the first half of Calendar 2019. Finally, mgmt is planning for a pre-IND meeting with the FDA in calendar 2019 to finalize steps to enable human clinical trials in A1AT patients.”
According to TipRanks.com, Lavin is a 5-star analyst with an average return of 11.6% and a 60.6% success rate. Lavin covers the Healthcare sector, focusing on stocks such as Establishment Labs Holdings Inc, Helius Medical Technologies, and Tactile Systems Technology.
Currently, the analyst consensus on Organovo Holdings is a Moderate Buy with an average price target of $3.
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BioMarin (BMRN)
J.P. Morgan analyst Cory Kasimov maintained a Buy rating on BioMarin on November 7 and set a price target of $133. The company’s shares closed on Friday at $95.67.
Kasimov observed:
“We come away from BMRN’s annual R&D Day (slides here) with incrementally higher conviction that this is a name to own into 2019 and beyond. While there were no surprising new disclosures today (and we weren’t expecting any), we’d flag three noteworthy takeaways on the late-stage pipeline: (1) the Phase 3 trial of vosoritide enrolled its last patient today, setting up top-line results for late 2019; (2) new vosoritide Phase 2 data shows encouraging and consistent efficacy at 42 months; & (3) an accelerated filing for valrox in 2H19 seems much more likely than not. Beyond that, the company is clearly putting a lot of time and energy into building its gene therapy manufacturing capabilities and continuing to backfill the pipeline, focusing on medium-sized (~5-20K) rare diseases. Reiterate OW.”
According to TipRanks.com, Kasimov is a 1-star analyst with an average return of -0.2% and a 37.8% success rate. Kasimov covers the Healthcare sector, focusing on stocks such as ACADIA Pharmaceuticals Inc, Allogene Therapeutics Inc, and Vertex Pharmaceuticals.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for BioMarin with a $123.20 average price target, a 28.8% upside from current levels. In a report issued on October 26, Raymond James also maintained a Buy rating on the stock with a $114 price target.
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Histogenics (HSGX)
BTIG analyst Ryan Zimmerman maintained a Hold rating on Histogenics on November 8. The company’s shares closed on Friday at $0.51, close to its 52-week low of $0.50.
Zimmerman observed:
“HSGX reported results for 3Q18, detailing continued discussions with the FDA on potential pathways to a NeoCart BLA submission and an updated cash position following an equity raise in October. The company met with the FDA in the regulatory process ongoing, we do not model NeoCart generating revenue until FY20. HSGX did complete a financing in the quarter, raising $15.4M for the company through a stock and warrant offering which should extend the operating timeline, but we believe the company will need to raise further capital, and we model one raise each in FY19 and FY20. We initially downgraded shares (here) after HSGX first announced missing the primary endpoint of its Ph. 3 trial on our belief that the regulatory timeline for NeoCart had been extended, making continued funding of the company more difficult and creating significant risk for the company.”
According to TipRanks.com, Zimmerman is a 5-star analyst with an average return of 24.7% and a 64.4% success rate. Zimmerman covers the Healthcare sector, focusing on stocks such as Zimmer Biomet Holdings, Integra Lifesciences, and OrthoPediatrics Corp.
Histogenics has an analyst consensus of Strong Buy, with a price target consensus of $2.07.
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