April 4, 2011 7:27 AM EDT
Needham & Company initiates coverage on Pluristem Therapeutics (NASDAQ: PSTI) with a Buy. PT $5.
Needham analyst says, "By leveraging its proprietary 3D cell culture technology, Pluristem Therapeutics is developing allogeneic placenta-derived stem cell therapy for the treatment of severe ischemic, inflammatory, and degenerative diseases.
Its lead product, PLX-PAD, has demonstrated safety and encouraging efficacy in Phase 1 trials in critical limb ischemia (CLI).
Pluristem has recently engaged in successful discussions with the FDA and EMA and is planning to initiate a comprehensive set of clinical programs in peripheral artery disease (PAD), including a Phase 2 study in intermittent claudication (3Q11), potential pivotal Phase 2/3 study in CLI (4Q11), and a potential pivotal Phase 2/3 study in Buerger’s disease (4Q11).
The company recently raised $38MM, sufficient capital to support clinical development into 2013. While we acknowledge the risk of developing cell-based therapies in general as well as the early stage PLX-PAD data to date, we believe PSTI represents a favorable risk/reward investment opportunity, given the advantages of allogeneic, off-the-shelf cell therapy, low COGS, and multiple shots on goal in related clinical programs." |
