UPDATE: H.C. Wainwright Upgrades BeyondSpring Inc. (BYSI) to Buy, $100 PT

August 4, 2021 8:49 AM EDT
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Price: $15.82 --0%

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    8 Buy, 1 Hold, 0 Sell

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    Up: 7 | Down: 13 | New: 21
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(Updated - August 4, 2021 8:52 AM EDT)

H.C. Wainwright analyst Joseph Pantginis upgraded BeyondSpring Inc. (NASDAQ: BYSI) from Neutral to Buy with a price target of $100.00.

The analyst commented, "This morning BeyondSpring announced the highly anticipated Phase 3 Dublin-3 data in NSCLC patients. Recall this study tested Plinabulin plus docetaxel (DP) (n=278) vs. docetaxel alone (D) (n=281) in 2L and 3L NSCLC patients who were EGFR wild type. The primary endpoint of the study, overall survival (OS) was met with p-value of 0.03 in the intent-to-treat population. Further, the secondary endpoint data are quite impressive to us, showing:

· ORR - p<0.03

· PFS - p<0.01

· Grade 4 neutropenia, cycle 1 day 8: DP arm: 5.3% vs. 27.8% in D arm (p<0.0001)

· 24-month OS rate: DP: 22.1% vs 12.5% for D (p<0.01)

· 36-month OS rate: DP: 11.7% vs. 5.3% for D (p=0.04)

· 48-month OS rate: DP: 10.6% vs. 0% for D (p-value cannot be calculated)

While we were cautious ahead of the NSCLC data, CIN has continued to be the primary driver of the BeyondSpring thesis. While we were 100% right on CIN (with Breakthrough Therapy designation and November 2021 PDUFA date), we were 100% wrong on NSCLC; a dramatic shift in the thesis has now taken place. On the CIN indication alone, we believe the current market cap of $377 million does not place adequate value on the CIN program alone, and was not reflective at all of the NSCLC indication; it appeared the share performance as of late also reflected caution on the Dublin-3 data. It is great to be wrong here, because the data represent a significant improvement in these later line lung cancer patients. As we previously highlighted, launch risk still remains for CIN; however, the NSCLC data make it hard to be on the sidelines now. We do need to highlight that the company's commercial strategy and delineating details of it post-haste is now at the forefront of the thesis; we look forward to visibility to: (1) financing strategy/risk of the company; (2) partnering; and (3) our perception that the takeout potential of the company just increased significantly.

For an analyst ratings summary and ratings history on BeyondSpring Inc. click here. For more ratings news on BeyondSpring Inc. click here.

Shares of BeyondSpring Inc. closed at $9.63 yesterday.

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