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Wedbush Cuts Price Target on GTX Inc. (GTXI), But Still Sees Some Value

February 21, 2012 3:48 PM EST
GTXI Hot Sheet
Rating Summary:
    4 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 8 | New: 36
Wedbush is reiterating its Outperform rating on shares of GTX Inc. (NASDAQ: GTXI), but is slashing its price target from $13 to $6.

Although the FDA placed a a clinical hold on its Capesaris program, due to
rates of venous thromboembolic events in the Phase II prgram, the firm notes the company continues to enroll its enobosarm (Ostarine) Phase III POWER-1 and POWER-2 trials. The POWER-1 and 2 trials account for roughly $5 of its new $6 price target.

"Given that second-line patients were treated with lower doses, had no VTEs, and showed a drop in PSA and free testosterone, we could see a pathway to Capesaris approval in that patient population," reports an analyst at Wedbush. "We are adjusting our model to account for a potential delay in clinical approval for Capesaris, along with adjusting the addressable patient population to include more 2nd-line patients, while decreasing the 1st-line patient penetration rate."

For FY12, the firm raised its EPS estimate from ($0.68) to ($0.63), while reaffirming its $14 million revenue estimate.

For an analyst ratings summary and ratings history on GTX Inc. click here. For more ratings news on GTX Inc. click here.

Shares of GTX Inc. closed at $5.80 yesterday, with a 52 week range of $2.27-$6.86.


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