Signal Genetics (SGNL) Signs Second MSA with for MyPRS; Success Could Lead to Larger Phase 3s

Chardan Capital affirms its Buy rating and $2.75 price target on Signal Genetics (Nasdaq: SGNL) after the company announced the signing of a Master Service Agreement (MSA) with a leading biopharmaceutical company.

Analyst Keay Nakae commented, The signing of this second agreement with a biopharma company customer in recent months is one component of the company's multi-pronged strategy to drive sales growth. These types of contracts offer the benefit of guaranteed pricing for the test, at a higher level than the current reimbursed level of $2,000 covered by Arkansas Blue Cross Blue Shield. We expect the immediate benefit of this agreement to Signal's revenue will be modest. However, success in these clinical studies could lead to larger Phase 3 studies, which can enroll closer to 1,000 patients per study. More importantly, We believe that the real value of this agreement is that it confirms the possibility that multiple pharma/biotech companies could chose to utilize the information provided by MyPRS to inform their respective MM drug development initiatives. Under the best case scenario, MyPRS would be incorporated as a possible companion diagnostic for a new drug.

Nakae continues to believe Signal Genetics is an 'intriguing, speculative micro-cap investment story."

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