Here’s Why Sophiris (SPHS) Stock Skyrockets Today
Sophiris (NASDAQ:SPHS) shares are shooting up 27% faster than Jack’s magic bean sparking right into a giant beanstalk. The reason? The drug maker announced that the investigation into the patient death in the phase 2b study of topsalysin in prostate cancer (PC) was unlikely to be related to the drug or the procedure.
Sophiris CEO Randall E. Woods stated, “As we have previously reported, over 450 patients have received topsalysin at various doses. Topsalysin continues to appear to be well-tolerated with no new safety signals reported […] We are very encouraged with the results from the single administration of topsalysin in our Phase 2b study that were reported in June 2018. We continue to plan and move forward with a potential Phase 3 study design based on the response rates and safety profile we have observed to date. We look forward to reporting the complete efficacy and safety data from the Phase 2b study by the end of the year which will include the biopsy and safety data from the 10 patients who received a second administration of topsalysin.”
Maxim analyst Jason McCarthy opined, “Recall that the patient was the last of 11 patients treated who had gone on to receive a repeat dose of topsalysin. The data safety monitoring committee in June evaluated the first seven patients and found no safety issues. Topsalysin has also been used to treat over 450 patients in several clinical trials (enlarged prostate and PC) with no safety issues. Sadly, the patient in the PC study is believed to had passed on from Sudden Cardiac Death, for which in the autopsy there were multiple risk factors (according to the PR). The P2b 6-month biopsy data in PC for single administration has already been positive with 10/35 experiencing tumor ablation with 6 complete ablations. Repeat dose data is next in 4Q and represents a significant catalyst for SPHS shares which remain undervalued, in our view.”
McCarthy reiterates a Buy rating, with a price target of $8.00, which represents a potential upside of 143% from where the stock is currently trading. (See Stock Recommendations from Jason McCarthy)
McCarthy is not the first analyst with an optimistic outlook for Sophiris share price. H.C. Wainwright’s Joseph Pantginis and Piper Jaffray’s Christopher Raymond also rate SPHS a Buy, with price targets of $7.00 and $10.00, respectively. (See SPHS’s price targets and analyst ratings on TipRanks)