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Athersys (ATHX) PT Cut to $5 at Maxim Group; 'Buy' Maintained

December 22, 2015 7:59 AM EST
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Price: $0.10 --0%

Rating Summary:
    4 Buy, 1 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Maxim Group analyst Jason Kolbert cut his price target on Athersys (NASDAQ: ATHX) to $5.00 (from $9.00) but maintained a Buy rating.

Kolbert highlighted:

  • We believe Multistem will work in Stroke but the challenge for Athersys in the wake of the prior Phase II trial is now a re-run of a new trial based on what has been learned. We are hopeful to see this new trial begin in 1H-2016. In reviewing our model we push back Multistem in stroke until 2019, where we might see revenues particularly in Japan. As a result of these changes our 2016 price target falls to $5 from the current $9.
  • We do some catalysts in 2016 especially if Athersys lands a significant partner in Japan. Recall that Athersys recently announced that Chugai (4519 - ¥4355 - NR) will not be moving MultiStem forward in Japan. Athersys did however announce a "Letter of Intent" with what we believe is a significant pharma company in Japan. While we have no special knowledge of proposed deal terms, we do believe any partnership will be bigger ($) and represent more indications (beyond stroke).
  • Our focus and confidence is data-driven. Our continued review of the maturing data sets (see the new whisker plot exhibit) from the Phase II stroke trial supports our belief that Athersys has not only met the safety hurdle but demonstrated in the post-hoc analysis (evaluating patients in the 24- to 36-hour window) that proof of concept exists for a therapeutic benefit.

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

Shares of Athersys closed at $1.01 yesterday.



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