What occurred
The inventory market as a complete had a superb Monday, however CTI BioPharma (CTIC 4.49%) had a very good time of it. The China-based biotech’s shares leaped practically 5% on the again of not one however two constructive analyst initiations.
So what
The 2 establishments launching their protection of CTI BioPharma inventory have been Taiwan-headquartered SinoPac Monetary Holdings and U.S. funding financial institution SVB Leerink. Each the previous’s Kenneth Shields and the latter’s Andrew Berens have been bullish on the inventory, tagging it with the equal of purchase suggestions. Each have additionally set their worth targets at $13 per share — practically triple the inventory’s present stage.
Neither evaluation was accessible for dissemination, however this wasn’t the primary time prognosticators have expressed optimism concerning the firm. In early September, Jefferies‘ Kelly Shi additionally initiated protection on CTI BioPharma with — you guessed it — a purchase advice and a $13 per share worth goal.
These strikes come not lengthy after the biotech reported its second-quarter outcomes, which marked a serious shift in its fortunes. It was that interval by which the previously clinical-stage firm recorded its first gross sales of Vonjo. The drug, which treats a uncommon bone marrow dysfunction known as myelofibrosis, introduced in an encouraging $12.3 million within the quarter.
Now what
It is commonplace for analysts (and traders) to get excited a few biotech within the wake of a brand new product’s approval and subsequent launch. We should always keep in mind, although, that it is nonetheless early days for Vonjo, and the drug’s future is not assured regardless of these good second-quarter gross sales figures.
Eric Volkman has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Jefferies Monetary Group Inc. The Motley Idiot has a disclosure coverage.
