H.C. Wainwright Weighs in on 4 Healthcare Stocks: DARA Biosciences Inc, Spectrum Pharmaceuticals, Inc., Celladon Corp, Edap Tms SA (ADR)

H.C. Wainwright’s healthcare analysts are weighing in today on Raleigh-based pharma company DARA Biosciences Inc (NASDAQ:DARA), biotechnology company Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI), cardiovascular gene therapy company Celladon Corp (NASDAQ:CLDN), and French medical device company Edap Tms SA (ADR) (NASDAQ:EDAP).

DARA Biosciences Inc

Analyst Reni Benjamin reiterated a Buy recommendation on DARA Biosciences Inc, with a $2.00 price target, after the company reported first-quarter results, posting a net loss of $3.2 million, or ($0.16) per share versus Benjamin’s estimate of $2.2 million, or ($0.12), respectively. The analyst noted, “DARA Biosciences’ core franchise is comprised of niche-marketed therapeutics encompassing cancer supportive care. With a modest revenue generating pipeline, the potential to move KRN5500 in to the clinic, and a cash position of $9.8 MM, sufficient to fund operations until 1Q16, we believe DARA shares could appreciate for the patient, long-term investor.” Furthermore, “Although the company has provided guidance of $3.7 MM in revenues for non-Oravig therapeutics, we are maintaining our estimates until additional clarity and second quarter financials are reported.”

Spectrum Pharmaceuticals, Inc.

Additionally, H.C. Wainwright’s Reni Benjamin came out today with a research report on Spectrum Pharmaceuticals, Inc., reducing the price target to $10 (from $13), while maintaining a Buy rating on the stock. The decreased price target comes in light of recent news that the company’s injunction motion aimed to block Sandoz’s generic Fusilev launch has been denied by the appeals court. The analyst wrote, “Given the recent lifting of the temporary Fusilev injunction, and the confirmation that Sandoz has launched a generic version of Fusilev at risk, we project declining Fusilev revenues of $43.5 MM in 2015 going to $22.6 MM in 2016. In our opinion, the company’s revenue ramp should resume a positive trajectory once CE-Melphalan, SPI-2012, and Apaziquone contribute meaningfully to revenues beginning in 2017.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Reni Benjamin has a total average return of -1.2% and a 38.3% success rate. Benjamin has a -9.3% average return when recommending SPPI, and is ranked #3036 out of 3602 analysts.

Celladon Corp 

H.C. Wainwright analyst Ching-Yi Lin weighed in today with his views on Celladon Corp, after the company reported first-quarter earnings along with a company update as management continues to review its failed CUPID 2 trial results and decide on its next step forward. The analyst maintained a Neutral rating on the stock, without providing a price target. Yi Lin noted, “Until the company decides on its next step forward, we see the company at a temporary hold with further clinical development and maintain our Neutral rating.” Furthermore, “With $70.6M in cash, the company has enough to begin anew. We see the next likely step forward as development of its Stem Cell Factor program, a gene therapy application for treatment of cardiac ischemia—preclinical studies demonstrated potential improvement in cardiac function and survival after myocardial infarction.”

Analyst Ching-Yi Lin has a total average return of -51.8% and a 0.0% success rate. Lin has a -85.0% average return when recommending CLDN, and is ranked #3464 out of 3602 analysts.

Edap Tms SA (ADR)

Finally, H.C. Wainwright analyst Swayampakula Ramakanth reiterated a Buy rating on Edap Tms SA (ADR), with a price target of $4.50, after the company reported first-quarter results on May 12 after market close. The company reported revenues of €6.2M, compared to Ramakanth’s estimate of €8.5M, and a net loss of €2.4M, compared to Ramakanth’s estimated net income of €833,000. The analyst commented, “The differences mainly resulted from lower-than-expected HIFU revenues and €2.4M in non-cash expenses, partially offset by better-than-expected lithotripsy revenues. We have adjusted our financial model to reflect 1Q15 results. For 2015, we project revenues of approximately €28.9M and estimate a net loss of €1.6M.”

Analyst Swayampakula Ramakanth has a total average return of 1.6% and a 30.0% success rate. Ramakanth has a 14.7% average return when recommending EDAP, and is ranked #2069 out of 3602 analysts, according to TipRanks.

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