Tokai Pharmaceuticals Inc (NASDAQ:TKAI), a biopharmaceutical company focused on developing and commercializing innovative therapies for prostate cancer and other hormonally driven diseases, today announced that its Board of Directors has initiated a review of strategic alternatives for the company focused on maximizing stockholder value.
Potential strategic alternatives that may be explored or evaluated as part of this review include a sale of the company, a reverse merger, a business combination or a sale, license or other disposition of corporate assets of the company. There is no set timetable for this process and there can be no assurance that this process will result in any such transaction. In conjunction with this process, the company is continuing to assess the best path forward for its galeterone clinical trial program. The company now anticipates all patients enrolled in the ARMOR3-SV clinical trial will discontinue treatment by the end of the year.
As part of its review of strategic alternatives, Tokai has engaged Wedbush PacGrow as its financial advisor. (Original Source)
Shares of Tokai Pharmaceuticals are up nearly 14% to $1.17 in pre-market trading Thursday. TKAI has a 1-year high of $14.22 and a 1-year low of $1.01. The stock’s 50-day moving average is $1.63 and its 200-day moving average is $5.25.
On the ratings front, Tokai has been the subject of a number of recent research reports. In a report issued on August 8, William Blair analyst Y Katherine Xu reiterated a Hold rating on TKAI, with a price target of $2.00, which represents a potential upside of 94% from where the stock is currently trading. Separately, on July 26, Wells Fargo’s Jim Birchenough downgraded the stock to Hold.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Y Katherine Xu and Jim Birchenough have a total average return of 3.7% and 18.3% respectively. Xu has a success rate of 45% and is ranked #1332 out of 4147 analysts, while Birchenough has a success rate of 49% and is ranked #120.
Tokai Pharmaceuticals, Inc. is a clinical stage biopharmaceutical company, which focuses on developing novel proprietary therapies for the treatment of prostate cancer and other hormonally driven diseases.