Roth resumes coverage of Fibrocell at buy

Roth Capital Partners has resumed coverage of Fibrocell Science (NASDAQ:FCSC) with a “buy” rating and $7 price target. The stock closed at $2.12 on Monday.

Fibrocell leverages its expertise with fibroblasts to target diseases of the skin, connective tissue and joints. The technology can take advantage of the inherent properties of fibroblasts, but also brings to bear the power of gene therapy, which can treat monogenic diseases, including those with significant unmet medical needs.

Analyst Joseph Pantginis writes that azficel-T, Fibrocell’s lead product for vocal cord scarring, is expected to see a Phase 2 data read out in June this year. Fibrocell’s second product, FCX-007, is about to enter a Phase 1/2 study for the recessive dystrophic epidermolysis bullosa (RDEB), which is a devastating, progressive, painful blistering disease often leading to death.

As a part of the FCX-007 program for RDEB, the FDA previously granted pediatric rare disease designation to the product. Shouldthe BLA be approved, he said the product should be eligible to receive a priority review voucher, which is geared towards accelerating review of products.

“However, companies have been selling the vouchers, with the latest selling for $350-million, which could represent significant non-dilutive funding for the company,” Mr. Pantginis added.


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