FBR Capital Positive on Pluristem Therapeutics (PSTI) Orphan Drug Designation

FBR Capital analyst Vernon T. Bernardino weighed in on Pluristem Therapeutics (NASDAQ: PSTI) announced that the U.S. FDA granted Orphan Drug Designation to PLX-PAD cells as a potential treatment for severe preeclampsia.

Preeclampsia is a common complication of pregnancy that is potentially life-threatening for both the mother and her child, and estimated by various sources with an overall impact to the global health care system of about $3 billion annually, the analyst highlights. There are no current treatment options except for induced delivery, which can lead to premature births, stillbirths and neonatal and maternal deaths.

"We think PLX-PAD's Orphan Drug Designation helps accelerate development in this indication, which is not in our models, potentially leading to wider application of PLX-PAD cells. PSTI is currently conducting preclinical studies of PLX-PAD cells in animal models of preeclampsia in collaboration with Dr. Brett Mitchel of the Texas A&M College of Medicine, with data expected in 1H16 that could be a catalyst for the stock," he said. "With the shares trading near 52-week lows for no fundamental reasons, we think the stock is an attractive value and reiterate our Outperform rating."

The firm maintained an Outperform rating and price target of $6 on the stock.

For an analyst ratings summary and ratings history on Pluristem Therapeutics click here. For more ratings news on Pluristem Therapeutics click here.

Shares of Pluristem Therapeutics closed at $0.99 yesterday.

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