UPDATE: Aegis Capital Initiates Coverage on Venaxis with Buy Rating, $6 PT

In a report published Friday, Aegis Capital Corp. initiated coverage on Venaxis APPY with a Buy rating and $6.00 price target. Aegis Capital noted, “We are initiating coverage of Venaxis, Inc. (formerly AspenBio Pharma, Inc.) with a Buy rating and a 12-month price target of $6.00 per share. Venaxis is an emerging diagnostics company focusing on the development of a novel blood-based molecular test for triaging patients suspected of having acute appendicitis. In our view, the appeal of this test lies in its ability to identify patients at low risk of having appendicitis, thus avoiding unnecessary computer tomography (CT) scans. These CT scanning procedures are expensive and may also be dangerous, as they expose the patient to radiation. Venaxis is currently preparing to conduct a large pivotal study with its test, known as AppyScore, in the U.S. The aim is to secure 510(k) certification from the FDA and market the test independently in the U.S. with a small proprietary sales force. In anticipation of the conclusion of this trial in the second half of 2013, with regulatory approval possible either in late 2013 or early 2014 in the U.S., we would recommend that investors consider establishing long positions in Venaxis stock. We also note that the firm recently filed to obtain CE Mark designation in Europe as well, where it plans to commercialize the test through regional distributors.” Venaxis closed on Thursday at $2.63.