Tekmira (TKMR): Analyst Warns About Premature Excitement

Tekmira Pharmaceuticals (NASDAQ: TKMR) announced earlier that the FDA authorized TKM-Ebola treatment under expanded access protocols to subjects with Ebola virus. While the news is positive, analyst Michael J. Yee of RBC is recommending caution on "premature excitement."

"Given the severity of the on-going outbreak of Ebola in W. Africa, today's move by the FDA and Heath Canada is not hugely surprising. TKM-Ebola was the most clinically-advanced (Phase I) therapy with promising pre-clinical data and benign safety to date so it was reasonable in our view to provide as an option to pts who have no better options. However we caution its unproven early nature, and thus its impact to the program/company remains uncertain at best," said Yee.

"If it all goes well and becomes a savior for many pts then it may further validate TKMR's RNAi platform but if it does not turn out the way as many hope, then only more questions will remain. This is why we recommend caution on premature excitement over TKMR's Ebola program as we reiterate the primary value lies in its HBV asset (TKM-HBV) long-term," he added.

RBC Capital maintained an Outperform rating on Tekmira Pharma with a price target of $25.

For an analyst ratings summary and ratings history on Tekmira Pharma click here. For more ratings news on Tekmira Pharma click here.

Shares of Tekmira Pharma closed at $20.16 yesterday.

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