Maxim Initiates Coverage of Pluristem Therapeutics Inc. with a Buy Rating and $8.00 Price Target
(Thomson Reuters ONE via COMTEX) -- Jason Kolbert, Maxim Group LLC's recently appointed Senior Biotechnology Analyst says the investment banking firm believes that Pluristem Therapeutics Inc. (NASDAQ:PSTI) is a well-positioned company with a unique product which they expect to progress solidly over the next year as a global phase II trial begins in intermittent claudication (IC).
Kolbert points to Pluristem's recently signed license with United Therapeutics Corporation (NASDAQ:UTHR) for the development of PLX cells in pulmonary disorders, which initiated at $7M and includes an additional $37.5M in regulatory milestones. Maxim believes this could be one of many therapeutically focused deals to come.
Pluristem utilizes Placental eXpanded (PLX cells) in the treatment of a variety of inflammatory and ischemic conditions. Like Buy rated Athersys, Inc.(NASDAQ:ATHX), Mesoblast limited (ADR) (PINK:MBLTY) and Not Rated Osiris Therapeutics, Inc. (NASDAQ:OSIR), Pluristem uses allogeneic cells that can be expanded in culture and used off-the-shelf without tissue matching or immunosuppression. Maxim believes Pluristem's three-dimensional bioreactor manufacturing technology is one of the company's key differentiators, allowing it to expand cells more efficiently under a fully controlled, more natural environment (3D versus 2D), designed to be like the body itself. No external growth factors are used, resulting in a natural cell growth cycle.
The analyst believes that Pluristem's fundamental valuation is low given the potential across multiple indications. He also believes that Pluristem will benefit as other companies' trials advance, creating a surrogate proof of concept for PSTI.
Maxim is initiating coverage of Pluristem Therapeutics with a Buy Rating and a 12-month target price of $8.00.
Maxim Group LLC is a full-service investment banking firm headquartered in New York. Maxim Group provides a full array of financial services including investment banking; private wealth management; and global institutional equity, fixed-income and derivatives sales and trading as well as equity research.
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