Roth Capital Partners launched coverage of Fortress Biotech (NASDAQ:FBIO), which acquires and develops biopharmaceutical assets, with a “buy” rating and price target of $4. The stock closed at $1.55 on July 1.
“The impetus for our buy rating on Fortress shares is our belief that the current assets have significantly greater value than the current enterprise value,” writes analyst Scott Henry. “We further believe that multiple catalysts could both increase the company valuation and provide non-dilutive capital to fund development costs.”
Mr. Henry cites five key inflection points within the next 12-to-18 months that could boost the value of the company’s assets and revalue the shares higher.
They include filing of IV tramadol by 32%-owned Avenue Therapeutics; pivotal trial commencement for MB-107 to treat X-linked severe combined immunodeficiency by 30%-owned Mustang Bio; Phase 2 trial commencement for CAEL-101 to treat AL amyloidosis by 43%-owned Caelum Biosciences in a partnership with Alexion Pharmaceuticals; advancement of Checkpoint Therapeutics oncology programs, 32% owned by Fortress; and Phase 3 data for CUTX-101 to treat Menkes disease by 89%-owned Cyprium Therapeutics.
