Maxim Group lowered its price target for Bio-Path Holdings (NASDAQ:BPTH) to $2 from $5, citing the company’s data trough ahead. The stock was changing hands at $1.72 on Wednesday afternoon.
Analyst Jason McCarthy writes that Bio-Path is funded through the next inflection point, proof-of-concept (POC) Phase 2 data for lead antisense drug, BP1001, in AML. Data could be released in late 2017, depending on the speed of enrollment. The first patient should be enrolled soon, with clinical sites now open.
“However, the time between first patient dosed and POC data is likely going to be at least 12 months, in our view, and with no other significant catalysts expected during that time, we see Bio-Path in the precarious situation of having to navigate the data trough ahead,” he added.
Among model changes, he rolled back the timeline to commercialization from 2019 to 2020, reduced potential market share, and factored in additional risk (30%).
“As our model assumes Bio-Path will have a partnership to launch BP1001, we also walk back potential fees and milestones from 2017 to 2018,” he said.
