Versant ups BioMS to “neutral”

Versant Partners upgraded BioMS Medical (TSX:MS) to “neutral” from “sell,” but stuck with its 12-month price target of 50 cents. The stock was recently quoted at 36.5 cents.

Analyst Doug Loe writes that with the failure of BioMS’s Phase 3 clincial trial in secondary progressive multiple sclerosis, the company’s main asset is cash of about $56.3-million at the end of the third quarter.

He suggests three possibilities for the use of the cash: a dividend to shareholders, a merger with a capital-constrained firm that has clinical assets, and the acquisition of clinical assets that BioMS could develop on its own.