Ladenburg starts Kindred Biosciences at buy

Ladenburg Thalmann initiated coverage of Kindred Biosciences (NASDAQ:KIN) with a “buy” rating and a $7.50 price target. The stock closed at $5.40 on Monday.

“We view Kindred as an emerging leader in development of new biologic therapies for companion animals, with two potential product launches in 2017,” writes analyst Kevin DeGeeter.

He views biologic therapies for the treatment of companion animals as an attractive growth opportunity based on the potential for superior efficacy compared with current therapies, more convenient dosing, potential for premium pricing, attractive specialty commercial model that leverages the reach of veterinarians and opportunities to monetize the platform through broad global partnerships.

He said Kindred is positioned to complete three important milestones before requiring additional financial resources, including the launch of Zimeta in mid-2017, successful completion of pilot study for epoCat (feline EPO) by the first half of 2017 and the potential launch of epoCat in the first half of 2019.

Mr. DeGeeter figures, the equine franchise, including Zimeta, can achieve $36.8-million in revenue by 2020, with epoCat achieving sales of $12.7-million in 2020. 


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