Maxim Group Downgrades Pluristem Therapeutics (PSTI) to Hold

Maxim Group downgraded Pluristem Therapeutics (NASDAQ: PSTI) from Buy to Hold.

Analyst Jason Kolbert highlighted:

• Pluristem raised capital in a structured transaction (100% warrant coverage), we estimate after fees of ~$16.5M providing a about year's worth of operating capital. The goods news is they got the cash even if the terms were dilutive.
• We are lowering our rating to Hold from Buy as we are not in agreement with the company in terms of their clinical plans. We feel the CLI programs are not properly powered. Management intends to leverage fast track pathways now available in Japan, Europe and we would expect the U.S. to drive a CLI product to commercialization. While we believe that Pluristem's allogeneic cell therapy is safe, the issue is will it really work in CLI and how can that be proven? Fast track pathways are designed to allow these "safe" therapies a more rapid pathway to the marketplace but the sponsor must demonstrate proof that it works. We do not believe the trial designs that the company is proposing can definitely answer this question in a variable disease like CLI.

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

Shares of Pluristem Therapeutics closed at $1.14 yesterday.

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