J.P. Morgan Maintains Neutral On Ziopharm Oncology Following 4Q14 Results


In a research report issued today, J.P. Morgan analyst Cory Kasimov maintained a Neutral rating on ZIOPHARM Oncology Inc. (NASDAQ:ZIOP), following the company’s fourth-quarter results. ZIOP ended 4Q with $43M in cash, and subsequently raised ~$95M in a secondary offering. ZIOP expects its existing cash to support operations into 1Q17.

Kasimov noted, “After ZIOP/XON’s announcement of the deal with MD Anderson in the CAR-T space, focus has turned to the potential of the combined technology platform. While we acknowledge the interesting long-term potential, programs have yet to enter the clinic, and we await more details/proof of concept to better assess the ultimate value.”

Furthermore, “We have updated our model for 4Q results. Changes were modest. We are also updating our model to reflect the deal with MD Anderson in the CAR-T space. Recall ZIOP issued MD Anderson $50M in common stock, and an additional $7.5M in stock to accelerate the deal. The co has also committed to provide $15-20M in annual research funding to MD Anderson. We are also updating the model to reflect ZIOP’s recent secondary offering during which it raised ~$95M.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a total average return of 15.5% and a 62.7% success rate. Kasimov is ranked #352 out of 3483 analysts.