Canaccord Reiterates Buy On Mast Therapeutics In Light Of Recent Preclinical Data In Embolic Stroke


Canaccord Genuity’s healthcare analyst John Newman weighed in today with a few insights on Mast Therapeutics Inc (NYSEMKT:MSTX), as the company recently announced that, in a model of embolic stroke with delayed administration of tissue plasminogen activator (tPA), treatment with vepoloxamer (MST-188), both alone and in combination with tPA, was superior to treatment with tPA alone and saline controls.

The analyst reiterated a Buy rating and a $3 price target on the stock.

Newman observed, “Although early, this data provides preliminary support of possible protection against bleeds from fibrinolytic therapy, and possibly can have validation for later clinical trials to use the two drugs in combination in the clinical setting for all embolic stroke patients.”

The analyst continued, “Because embolic stroke shares significant similarities with other arterial diseases, we believe this trial provides early support for the current Phase 2 proof of concept study in patients with Acute Limb Ischemia (ALI). Both embolic stroke and ALI results from poor circulation of arteries, resulting in plaque build up and atherosclerosis. We remind investors that the current ALI trial is a Phase 2, randomized, double-blind study where patients with ALI will receive tPA with or without Vepoloxamer, with expected completion of enrollment by 2016. Because Vepoloxamer was able to demonstrate efficacy when combined with tPA in embolic stroke, we have increased confidence in a positive outcome from the ALI study.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a total average return of 22.6% and a 68.3% success rate. Newman has a 5.5% average return when recommending MSTX, and is ranked #167 out of 3480 analysts.