Dawson James cuts Soligenix to neutral; PT to $2 from $3


Dawson James Securities downgraded Soligenix (NASDAQ:SNGX) to “neutral” from “buy” and reduced its price target to $2 from $3, citing a model update for dilution. The stock closed at $2.13 on July 27.

“We have updated our model, and in doing so, see that the company has been selling stock, both to raise capital and pay for R&D,” writes analyst Jason Kolbert, adding that the mathematical result lowers his valuation to $2 from $3. “Given the rise in the stock price, we can no longer justify our buy rating,” he said. 

Mr. Kolbert also noted the company announced news [on July 28] of preclinical results for a COVID-19 vaccine, which seems “promotional.” 

Soligenix has completed enrollment in its Phase 3 trial of SGX942 for the treatment of oral mucositis in head and neck cancer and expects to report top-line results in the fourth quarter of 2020.

Mr. Kolbert said a recent positive data monitoring committee recommendation indicated that a positive effect had been seen, “but to account for variability and maintain 90% statistical power, an increase [in the number of patients] was recommended. Increasing power is typically thought of as a ‘red-flag’ once a trial has been initiated,” he added.