Maxim Group analyst Jason McCarthy, Ph.D., reduced price targets for 13 stocks in his coverage universe, citing macroeconomic winds and a significant decline in stock prices, particularly for small-cap biotech stocks, which make it more difficult to raise capital.
“Amidst a rising interest rate environment, small-cap biotech – typically early-stage pre-revenue, capital intensive companies – is the poster child of multiple compression,” he said.
Noting that the Nasdaq U.S. small cap biotech index is down about 60% from its 52-week highs, Dr. McCarthy said that biotech companies with experienced management and a promising product pipeline will attract investors and capital. “With nearly 200 biotech companies now trading at negative enterprise values, including eight of the list of 13, we believe there are attractive values in the biotech sector.”
Price cuts in his “buy” rated coverage include:
- Biocardia (BCDA – PT to $4, from $7)
- Biocept (BIOC– PT to $5, from $7)
- Brooklyn ImmunoTherapeutics (BTX – PT to $3, from $5)
- Cellectar Biosciences (CLRB – PT to $1.25, from $2.00)
- CNS Pharmaceuticals (CNSP – PT to $1, from $2)
- Clarus Therapeutics (CRXT – PT to $1.50, from $4)
- Enveric Bioscience (ENVB – PT to $0.50, from $2)
- Galmed Pharmaceuticals (GLMD – PT to $1.50, from $3)
- INVO Bioscience (INVO–PT to $3, from $7)
- Kiora Pharmaceuticals (KPRX – PT to $1, from $2.50)
- NexGel (NXGL– PT to $5, from $6)
- Plus Therapeutics (PSTV – PT to $2, from $3)
- Quoin Pharmaceuticals (QNRX – PT to $2, from $5)
