Brean Capital Reiterates Buy Rating On Celldex Therapeutics, Here’s Why


In a research report released today, Brean Capital analyst Jonathan Aschoff maintained a Buy rating on Celldex Therapeutics, Inc. (NASDAQ:CLDX) with a price target of $35, after the company’s investigational immunotherapy Rintega was recently granted Breakthrough Designation by the FDA for EGFRvIII positive GBM. Additionally, the company today released its fourth-quarter results, posting EPS of $(0.36), which is in line with consensus estimate of $(0.35).

Aschoff noted, “We believe the designation was primarily based on the positive interim data from the Phase 2 ReACT trial of Rintega for Avastin-naïve recurrent GMB presented at SNO 2014. Celldex expects to announce full data from the Phase 2 ReACT trial, including mature OS data, around mid-2015, likely at ASCO.”

Furthermore, “Celldex ended 4Q14 with a healthy $201 million in cash and investments, which should be sufficient to support operations and clinical development through 2016, assuming a full approval for Rintega based on Phase 3 ACT IV data. Potential accelerated approvals would entail larger-than-expected SG&A expense and therefore a much higher cash burn over this period. Net cash burn in 4Q14 was $23 million, and as of December 31, 2014, Celldex had 90 million shares outstanding.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Aschoff has a total average return of 15.4% and a 64.3% success rate. Aschoff has a 24.6% average return when recommending CLDX, and is ranked #124 out of 3480 analysts.

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