Collins Stewart Starts BioMimetic Therapeutics (BMTI) at Buy, Price Target Calls for 143% Upside
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Price: $9.49 --0%
Rating Summary:
0 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
0 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Collins Stewart initiates coverage on shares of BioMimetic Therapeutics (NASDAQ: BMTI) with a Buy rating and $7 price target.
Shares of BMTI have fallen roughly 75 percent since May when the FDA gave the company's Augment a favorable recommendation, but noted concerns over studies design and carcinogenicity. The firm reported that its rhPDGF-BB molecule still represents a significant platform opportunity in orthopedics sector.
With shares closing down another 8 percent on November 21, Collin Stewart highlights that complete rejection of Agument by the FDA is already backed in and that any upside to the decision will be a positive catalyst. The firm comments that with 18 months of cash on their balance sheet, combined with two other products in the their pipeline, shares are well oversold. If approved, Collins calculates that Augment offers an additional $260 million in revenue opportunity.
An analyst at Collins Stewart reports, "Over the next couple of months, BMTI should receive official comments from FDA regarding the regulatory pathway for Augment. We believe that any clarity on the next steps for Augment would be a catalyst for BMTI shares. We recently saw this with three companies whose share prices had fallen significantly only to rise later (by 75% on average) following FDA feedback that provided visibility on the regulatory pathway: MELA Sciences (Nasdaq: MELA), Orexigen Therapeutics (Nasdaq: OREX), and Transcept Pharmaceuticals (Nasdaq: TSPT)."
For an analyst ratings summary and ratings history on BioMimetic Therapeutics click here. For more ratings news on BioMimetic Therapeutics click here.
Shares of BioMimetic Therapeutics closed at $3.13 yesterday.
Shares of BMTI have fallen roughly 75 percent since May when the FDA gave the company's Augment a favorable recommendation, but noted concerns over studies design and carcinogenicity. The firm reported that its rhPDGF-BB molecule still represents a significant platform opportunity in orthopedics sector.
With shares closing down another 8 percent on November 21, Collin Stewart highlights that complete rejection of Agument by the FDA is already backed in and that any upside to the decision will be a positive catalyst. The firm comments that with 18 months of cash on their balance sheet, combined with two other products in the their pipeline, shares are well oversold. If approved, Collins calculates that Augment offers an additional $260 million in revenue opportunity.
An analyst at Collins Stewart reports, "Over the next couple of months, BMTI should receive official comments from FDA regarding the regulatory pathway for Augment. We believe that any clarity on the next steps for Augment would be a catalyst for BMTI shares. We recently saw this with three companies whose share prices had fallen significantly only to rise later (by 75% on average) following FDA feedback that provided visibility on the regulatory pathway: MELA Sciences (Nasdaq: MELA), Orexigen Therapeutics (Nasdaq: OREX), and Transcept Pharmaceuticals (Nasdaq: TSPT)."
For an analyst ratings summary and ratings history on BioMimetic Therapeutics click here. For more ratings news on BioMimetic Therapeutics click here.
Shares of BioMimetic Therapeutics closed at $3.13 yesterday.
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