Athersys (ATHX) PT Doubled to $10 at Maxim Group

Maxim Group analyst Jason Kolbert doubled his price target on Buy-rated Athersys (NASDAQ: ATHX) to $10.00 (from $5.00) on a lower risk rating for MultiStem,

Kolbert highlighted:

• Given the building data that suggests MultiStem works (and that stem cell therapy works in multiple modalities), we are lowering our risk rating (to 20%, from 30%). This drives a price target increase to $10.00, from $5.00. While the challenge in reaching our price target remains the catalyst (a 2017 event), we believe that smart investors who take the time to evaluate the data will see that a positive outcome for MultiStem in stroke is probable. A positive outcome for Athersys would be transformative for both patients and the company.
• Athersys announced that the one-year follow-up data from the phase II stroke study showed that patients receiving MultiStem (N=65) continued to improve and had a statistically significant higher rate of "excellent outcome" (P=0.02) versus placebo (N=61).
• These data represented the total patient population – patients treated in the 24- to 48-hour window. A rating of excellent outcome was even more pronounced in the patients treated in the 24- to 36-hour window (P=0.01). The data were presented by lead investigator Dr. David Hess (stroke specialist and Chairman of the Department of Neurology at the Medical College of Georgia, Augusta University) at the International Stroke Conference in Los Angeles in February.
• There was a great showing at the Stroke Conference; Hokkaido is next. The clinical program in Japan appears to be taking shape. We look for additional data by late spring, as well as a finalization of the trial design (we expect one modestly sized trial) with blessings from Koseisho (the Japanese equivalent of the FDA). We assume that a fall start to the Japan trial is possible. We are also looking for a parallel international trial (U.S. are EU), which should follow a similar timeline.
• Conclusion: It's all in the data. Athersys continues to demonstrate that MultiStem has a meaningful clinical benefit in patients who have suffered an ischemic stroke and may extend the therapeutic window to 36 hours, as well as ameliorate some of the natural AEs (hyper inflammatory cascade), which tend to leave patients in an immune-depressed state (such as secondary infections and or pulmonary complications associated with stroke).

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 $1.83 yesterday.

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