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.

Sign up for the BioTuesdays weekly newsletter

Get the latest news on the healthcare industry’s corporate and clinical developments, executive moves, and market updates. Every Tuesday, in your inbox.