UPDATE: Oppenheimer Initiates Cleveland BioLabs at Outperform; A Unique Opportunity

Oppenheimer initiated coverage on Cleveland BioLabs

with an Outperform rating and a $3 price target. Oppenheimer commented, "Biodefense drug development has a unique risk/reward risk profile. On the positive side, there is nondilutive capital from the government to cover R&D, no need for marketing/salesforce since government is generally the primary buyer, and the safety data from biodefense (paid by government) can be used for other indications of the drug. … Cleveland BioLabs has been successful in gaining government grants with ~$80M awarded to date ($50M for development and $30M for potential procurement). As with most government grants, the company is reimbursed for completed work, which sums up to ~$40M for Cleveland BioLabs to date." Cleveland BioLabs closed at $1.40 on Wednesday.