Monday turned out to be a nightmare for PhaseRx Inc (NASDAQ:PZRX) investors after the biopharmaceutical firm announced that it has filed for Chapter 11 bankruptcy protection. PhaseRx shares reacted tot the news, crashing nearly 45% to $0.55.
PhaseRx expects to continue to manage and operate its business under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.
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Contemporaneous with the filing of the Chapter 11 petition, the company is working with Cowen and Company to review financial and strategic alternatives with the goal of maximizing stockholder value. Potential alternatives, to be explored further and evaluated during the review process, may include a strategic collaboration with one or more parties, or the licensing, sale or divestiture of some, or all, of the company’s proprietary technologies.
PhaseRx CEO Robert W. Overell commented, “The board and management team believe that the decision to voluntarily file for Chapter 11 bankruptcy protection is in the best interests of PhaseRx and its shareholders […] The protection afforded under a Chapter 11 filing enables us to continue to explore strategic alternatives, including a potential merger transaction. During this time we expect to continue to operate normally, and are thankful to our dedicated employees whom we expect to remain focused on the advancement of our programs.
On the ratings front, AGRX stock has been the subject of a number of recent research reports. In a report issued on November 16, Wedbush analyst David Nierengarten reiterated a Buy rating on ARGX, with a price target of $41, which represents a slight downside potential from current levels. Separately, on August 24, Cowen’s Boris Peaker reiterated a Buy rating on the stock.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Nierengarten and Boris Peaker have a yearly average return of 30.6% and 5.1% respectively. Nierengarten has a success rate of 53% and is ranked #133 out of 4722 analysts, while Peaker has a success rate of 42% and is ranked #1153.