H.C. Wainwright downgraded PDS Biotechnology (NASDAQ:PDSB) to “neutral” from “buy” and removed its price target, citing recent significant dilution and lack of meaningful catalysts over the remainder of the year “prompt us to move to the sideline, especially during the current pandemic.” The stock closed at 74 cents on March 27.
In addition, it remains to be seen what impact the COVID-19 pandemic has on study initiations and patient recruitment, writes analyst Joseph Pantginis.
PDS Biotech is a clinical stage immuno-oncology company with a growing pipeline of immunotherapies to treat various cancers.
“Our overall view on PDS’ technology platform remains positive,” Mr. Pantginis said. “However, stock-driving catalysts are lacking, in our belief, over the remainder of 2020, which focus on trial initiations.”
He also said recent significant dilution impacts valuation. “We would project additional fundraising, excluding potential partnering, later this year or into 2021 as reserves start to dwindle coming into meaningful data events.”
Among PDS’ catalysts, Mr. Pantginis pointed to three in the first half of 2020: a Phase 2 combination study with Merck in head and neck cancer, with initial data expected in mid-2021; a Phase 2 combo study with the NCI in advanced human papillomavirus, with initial data expected in the second half of 2021; and a Phase 2 partnered study in advanced cervical cancer, with timing of data not yet disclosed.
