Dawson James Securities initiated coverage of IsoRay (NYSE American:ISR) with a “buy” rating and $1 price target. The stock closed at 41 cents on July 1.
IsoRay is using the radioisotope, cesium-131, for treating malignant tumors. Three key sectors: prostate, brain, and other recurrent tumors are expected to make up the majority of the opportunity to establish cesium-131, which the company has renamed, Cesium Blu, as the isotope of choice in brachytherapy applications.
Analyst Jason Kolbert writes that the advantages of the IsoRay system are all catered to the safety and efficacy of the patient. “Cesium Blu introduces patients to a life of improved quality. It is able to directly target the tumor, minimizing damage to other tissue, as a result of the shorter half-life (cesium-131), compared with the other radioisotopes on the market.”
With a competitive price and a customized procedure model, the stage is set for Blu to be an effective treatment for not only prostate cancer, but also other hard to treat cancers in the brain, pelvis, gynecologic, head, neck, lung, colon, and rectal areas, Mr. Kolbert said.
“We model Cesium Blu in both prostate and non-prostate cancer markets. However, we see the real driver as the prostate cancer marketplace,” he added.
