Wedbush Downgrades BioMimetic Therapeutics (BMTI) to Neutral, Still See Approval of Augment Bone Graft
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Price: $9.49 --0%
Rating Summary:
0 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 10 | New: 18
Rating Summary:
0 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 10 | New: 18
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Wedbush downgraded shares of BioMimetic Therapeutics (NASDAQ: BMTI) to a Neutral rating from its previous rating of Outperform. The firm also removed its $14 price target on the stock until further updates are provided.
The company received a letter in response to its pending PMA for Augment Bone Graft providing, as the firm was forecasting, a path to approval without the need for additional clinical studies.
One of the biggest concerns Wedbush has from the results includes the post-hoc analysis of the ankle-fusion. The firm claims the results and method may negatively impact the potential for approval.
BMTI currently has between $65 million and $72 million in cash, which should be suitable founding for the next two years. The impact to planned spending controls on the injectable and soft-tissue pipeline programs is still unclear and raises the company's uncertainty slightly.
An analyst at Wedbush comments, "We continue to strongly believe in the approvability of ABG with the existing dataset and in our opinion, should the company perceive that the path as outlined will not succeed in an approval decision, we fully expect it to quickly move towards a formal dispute resolution proceeding with FDA."
The firm believes shares will remain within their current range until further information is presented.
For FY11, Wedbush estimates EPS of ($1.08) on $1.5 million in sales. For FY12, the firm is forecasting EPS of ($0.55) on $11 million in total sales.
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 $2.91 yesterday.
The company received a letter in response to its pending PMA for Augment Bone Graft providing, as the firm was forecasting, a path to approval without the need for additional clinical studies.
One of the biggest concerns Wedbush has from the results includes the post-hoc analysis of the ankle-fusion. The firm claims the results and method may negatively impact the potential for approval.
BMTI currently has between $65 million and $72 million in cash, which should be suitable founding for the next two years. The impact to planned spending controls on the injectable and soft-tissue pipeline programs is still unclear and raises the company's uncertainty slightly.
An analyst at Wedbush comments, "We continue to strongly believe in the approvability of ABG with the existing dataset and in our opinion, should the company perceive that the path as outlined will not succeed in an approval decision, we fully expect it to quickly move towards a formal dispute resolution proceeding with FDA."
The firm believes shares will remain within their current range until further information is presented.
For FY11, Wedbush estimates EPS of ($1.08) on $1.5 million in sales. For FY12, the firm is forecasting EPS of ($0.55) on $11 million in total sales.
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 $2.91 yesterday.
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