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BioCryst “buy” rating, $24 price target reiterated at H.C.Wainwright

Last updated: 13:19 10 Nov 2014 EST, First published: 14:19 10 Nov 2014 EST

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BioCryst Pharmaceuticals (NASDAQ:BCRX), a U.S. drugmaker, had its “buy” rating and price target of $24.00 maintained at H.C.Wainwright & Co.

The brokerage also reiterated its bullish position on BioCryst’s long-term prospect as a development and commercial authority in HAE, or Hereditary AngioEdema, a rare genetic disorder.

“Beyond 4161, the company continues to expect the advance of two next-generation once-daily HAE agents to the clinic in 2015,” analyst Andrew Fein wrote in a research note to clients today.

As for Biocryst’s Ebola antiviral agent ‘4430, HCW said the development of ‘4430 has received a boost in speed and timeline, with the NIAID (National Institute of Allergy and Infectious Diseases) boosting the total contract value to $28.7 million, including $2.4 million at the end of October for a second study in monkeys.

The first dose ranging study in monkeys has produced modest prolongation of survival, showing that the agent is active, HCW said.

“What caught our attention in the survival data shared by the company, is that the statistically significant albeit modest efficacy of the agent does not seem dependent on whether treatment starts post-infection or after a positive RNA test (suggesting that the agent could be equally efficacious even if started after RNA diagnosis rather than exposure/infection, as it applies to human cases),” Fein wrote.

HCW said it believes the recent boost to ‘4430 development was unexpected, and generally not part of the Street’s investment theses on the company.

“Although the current Ebola epidemic appears to have entered a steady state in Africa, and no longer appears to pose breakthrough threat to Western countries, the government development of new agents like ‘4430 will likely continue at fast pace, followed by government stocking, which should provide upside for all agents showing even modest efficacy (as a conservative case for ‘4430),” Fein wrote.

BioCryst reported third-quarter revenue of $3.2 million, mostly due to collaboration revenue from the NIAID contract for the advancement of ‘4430 towards Phase 1. On the operational front, R&D costs were $13.0 million and selling, general and administrative costs were $1.8 million.

Net loss for the quarter was $0.12 per share.

The company exited the quarter with $127.6 million, and continues to expect FY14 operating expenses in the range of $48-59 million.

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