BioTuesdays

HCW ups PDS Biotechnology to buy; PT $6

PDS Biotechnology Logo

H.C. Wainwright upgraded PDS Biotechnology (NASDAQ:PDSB) to “buy” from “neutral” with a price target of $6. The stock closed at $2.04 on Nov. 9.

In March 2020, HCW downgraded PDS based on dilution, significantly reduced visibility on potential data catalysts with trials not starting on time, or sites shutting down due to the pandemic, writes analyst Joseph Pantginis, Ph.D.

“As we come to the end of 2020, we believe that the investment case for PDS is set for important visibility and clinical catalysts in 2021,” he added.

Dr. Pantginis said all three studies with the company’s PDS0101 drug candidate are now ongoing, with interim readouts in 2021. They include the VERSATILE-002 study in recurrent and metastatic head and neck cancer in collaboration with Merck; a Phase 2 collaboration with MD Anderson Cancer Center in advanced cervical cancer; and a Phase 2 collaboration with the NCI in patients with HPV-associated cancers.

“The potential news flow from these studies could be meaningful, in our belief, during 2021, since the three studies are open-label; when data are meaningful, they are expected to be released. This should lead to multiple catalysts next year, representing important drivers for the shares,” he added.

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