Canaccord’s healthcare analyst Neil Maruoka weighed in on AEterna Zentaris Inc. (USA) (NASDAQ:AEZS), after the company announced the finalization of a co-promotion agreement with Armune BioScience for APIFINY, a test for prostate cancer. Under the agreement, AEterna will earn commissions based on the number of tests performed resulting from its targeted promotion in the US. AEterna shares dropped nearly 5% in trading Wednesday morning.
Maruoka noted, “We believe APIFINY is a nice incremental addition to Æterna‘s portfolio, and should be complementary to Zoptrex (currently in a Phase III study in endometrial cancer) by providing the company’s existing sales force with exposure to the oncology market.” The analyst continued, “Æterna Zentaris estimates >200,000 new cases of prostate cancer in the US during 2015. This market is a decent size; however, with ~2,500 orders of APIFINY during its first 8 months, we expect market penetration and ramp-up to be slow moving forward.”
The analyst reiterated a Speculative Buy rating on shares of Aeterna Zentaris, with a price target of $13, which implies an upside of 37% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Neil Maruoka has a total average return of -22.4% and a 26.8% success rate. Maruoka has a 16% average return when recommending AEZS, and is ranked #3609 out of 3644 analysts.