BioTuesdays

Maxim cuts PTs on five biotech stocks

Maxim Group reduced price targets for five biotech stocks, citing data troughs, financing conditions and political factors, which may be further compounded by a lack of catalysts and increasing operating expenses, pushing valuations to the low end of the 52-week range.

In addition, as the U.S. moves into the presidential election cycle, discussions around drug pricing have also pressured healthcare-focused stocks, writes analyst Jason McCarthy.

His price cuts include:

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Abeona Therapeutics (NASDAQ:ABEO) has delayed several drug candidates, which has extended his model to 2029 from 2025. He reduced his price target to $14 from $26. The stock closed at $4.40 on July 8.


Adams Pharmaceuticals (NASDAQ:ADMP) also has delayed several drug candidates as it concentrates efforts on naloxone. The company also needs to raise capital. He took his price target to $6 from $10. The stock closed at $1.29 on July 8.


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Mr. McCarthy increased the risk for Actinium Pharmaceuticals’ (NYSE American:ATNM) lomab-b AML trial to 50% from 30%. In addition, he factored in dilution from a prior financing, which in part pushed the stock’s valuation to the low end of the 52-week range. Combined with other minor adjustments, he reduced his price target to $1.50 from $3. The stock closed at 24 cents on July 8.


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Sophiris Bio (NASDAQ:SPHS) has a lack of catalysts ahead of plans for a Phase 3 program in prostate cancer. Mr. McCarthy figures the company will need a partner or will have to raise capital to fund the trial. He reduced his price target to $4 from $6. The stock closed at 93 cents on July 8.


Mr. McCarthy increased the risk for Vistagen Therapeutics’ (NASDAQ:VTGN) major depressive disorder program to 50% from 30%. Data from the company’s ELEVATE Phase 2 study is expected in the second half of 2019. Updates for pipeline programs may require additional capital. His price target falls to $4 from $6. The stock closed at 68 cents on July 8.

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