Needham Remains a Hold on Achaogen (AKAO)


Needham analyst Alan Carr maintained a Hold rating on Achaogen (AKAO) today. The company’s shares opened today at $0.41, close to its 52-week low of $0.40.

Carr observed:

“Achaogen hosted a 4Q18 conference call yesterday to provide a corporate update. Zemdri sales were $0.5M, consistent w/ pre-announced $0.45-0.5M. Mgmt implemented another corporate restructure in Feb 2019 to conserve resources. Sales force and MSL group has been scaled back to only a few personnel who will focus on a modest number of existing accounts. The move is expected to reduce cash burn to $15-17M in 2Q19, pushing runway to Jun 2019. Mgmt continues to examine strategic options, although no details provided. Zemdri is still used primarily in outpatient setting. Given small commercial infrastructure, it seems unlikely the drug will meaningfully penetrate the inpatient hospital setting even as hospitals gradually add the drug to formulary.”

According to TipRanks.com, Carr is a 4-star analyst with an average return of 3.9% and a 44.2% success rate. Carr covers the Healthcare sector, focusing on stocks such as Biohaven Pharmaceutical Holding Co Ltd, ACADIA Pharmaceuticals Inc, and Rhythm Pharmaceuticals Inc.

The word on The Street in general, suggests a Hold analyst consensus rating for Achaogen with a $2 average price target, which is a 387.8% upside from current levels. In a report released today, Mizuho Securities also maintained a Hold rating on the stock.

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The company has a one-year high of $15 and a one-year low of $0.40. Currently, Achaogen has an average volume of 1.74M.

Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock.

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Achaogen, Inc. is a biopharmaceutical company, which engages in the research, development, and commercialization of antibacterial treatments for multi-drug resistant (MDR) gram-negative infections. It offers Plazomicin to treat bacterial illness, such as complicated urinary tract infection, blood stream infections, and other infections due to MDR Enterobacteriaceae. The company was founded by Nathaniel E. David in June 2002 and is headquartered in South San Francisco, CA.

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