I hope all had a relaxing and long Labor Day weekend, outside those in Florida and the Southeast that have been rightly fixated on the evolving path of Dorian. In other news, new tariffs went into affect on September 1st. This is one reason futures are modestly down before we start a new trading week this Tuesday.
In the meantime, here are four biotech stocks analysts like this morning.
Last week, we hosted an NDR for Harrow Health in the company’s HROW filed an 8-K, announcing it had ceased operations of Park Compounding, its non-ophthalmology-focused 503A pharmacy in California, and terminated its asset purchase agreement with Noice Rx. Recall: In July, HROW agreed to sell substantially all of Park’s non-ophthalmology pharmaceutical compounding business’ assets to Noice. As we mentioned in our last update (see note dated 8/15/19), we did not update our estimates, post HROW’s 2Q19 print: We were waiting for the divestiture of Park Compounding to be finalized. As a result, we are updating our 3Q19 to 2021 estimates to account for HROW’s 2Q19 results/conference call, NDR, and update on Park Compounding.”
After additional late stage trial data just came out, Citigroup is maintainingits Buy rating on The Medicines Company (MDCO) but lifting its price target seven bucks a share. Citi's analyst states 'The results suggest that inclisran is comparable on safety and efficacy to the approved PCSK9 antibody agents. The analyst's new price target assumes a 100% probability of success for the drug'
MeiraGTx Holdings (MGTX) initiated as a new Overweight with a $40 price target at Piper Jaffray this morning. Piper's analyst states 'The company's pipeline is "broad and balanced" and each of its franchises, inherited retinal diseases, Parkinson's, and salivary gland, represent $1B-plus peak sales opportunities, and calls MeiraGTx one of the few vertically-integrated gene therapy companies.'
We now upgrade AGTC to the opportunity represented by a company: (1) now trading at 64% of 30 March 2019 cash, and (2) with important phase I/II data through 1H20 on 3 different programs (ACHM-A3, ACHM-B3, XLRP). We continue to flag the delays AGTC has had over the years in reporting datasets in achromatopsia A3 (ACHM-A3), achromatopsia X- linked retinitis pigmentosa (XLRP). The delays occurred as innovative companies like MeiraGTx (Buy, a Therapeutics (acquired by unrated Biogen) made progress with competing inherited retinal disease franchises (see research below). Despite the AGTC delays, we note that good science sometimes takes time to develop; and, industry participants recognize the soundness of AGTC’s science and broader capabilities, even if execution has been slow.”
And those are four small cap concerns getting analyst 'shout outs' as we are about to start a new trading week.
Thank You & Happy Hunting,