Healthcare Business

Jefferies Sees Big Upside From 4 Upcoming Near-Term Biotech Catalysts

FibroGen

FibroGen Inc. (NASDAQ: FGEN) has August Phase 2 IPF data for its FG-3019 antibody. The firm believes that signals of positive trends at least within subgroup and/or positive high-resolution computed tomography scan data and clean safety in separate Phase 2 combination study supports a move to a Phase 3 in the combo-regimen.

Jefferies only initiated its Buy rating on FibroGen in July. For another look: it was just in mid-July that Goldman Sachs downgraded FibroGen to Neutral from Buy.

FibroGen shares were last seen down 3% at $33.95 on Monday. The consensus target price is $43.80. FibroGen’s 52-week range is $15.60 to $35.85, and it has a $2.4 billion market cap.

Immunomedics

Jefferies has a Buy rating on Immunomedics Inc. (NASDAQ: IMMU). The firm raised its target to $9.00 from $7.50 in May. Jefferies noted that the final data for IMMU-132 in the Phase 2 study in 103 R/R triple-negative breast cancer patients at the SABCS in December and an update on the pre-BLA (biologics license application) filing CMC and clinical data meetings with U.S. Food and Drug Adminstration (FDA) are expected to occur in the fall. The CMC meeting will dictate when Immunomedics files the BLA, noted as December 2017 through March 2018.

For an outside view on Immunomedics: Cowen has an Outperform rating and a $15 target price, and its last report from July also noted that the IMMU-132 BLA is on track for the fourth quarter of 2017 or the first quarter of 2018.

Immunomedics is only a $8.35 per share stock, but it has a market cap of about $920 million and its consensus target price is $12.50. It is important to consider the volatility here, as the 52-week trading range is $2.02 to $9.51.

TherapeuticsMD

TherapeuticsMD Inc. (NASDAQ: TXMD) has already reported earnings, but Jefferies noted that the FDA is expected to send an Advice Letter during the week of August 6. The company is expected to issue an update some time after receiving the letter. This will determine whether the FDA will require a pre-marketing Phase 3 or agree to a postmarketing Phase 4 safety study. It will also determine whether TherapeuticsMD will need to pursue a formal Dispute Resolution process.

For another look at TherapeuticsMD: Deutsche Bank initiated coverage with a Buy rating and $10 target on July 21, and Oppenheimer raised its rating to Outperform from Perform with a $10 target on July 11. The Jefferies rating is Buy, and its $15 price target is much higher than the other calls.

At $5.25 a share, TherapeuticsMD has a consensus target price of $14.75 and a 52-week range of $3.50 to $8.30. Its market cap is $1.07 billion.