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UPDATE: JMP Securities Lowers PT on Aastrom Biosciences Following 2Q13 EPS Loss

Related ASTM
Earnings Scheduled For November 13, 2014
Aastrom Biosciences Announces Plans To Change Name To Vericel Corporation And Move Headquarters To Cambridge, Massachusetts

In a report published Friday, JMP Securities analyst Jason N. Butler reiterated a Market Outperform rating on Aastrom Biosciences (NASDAQ: ASTM), but lowered the price target from $3.00 to $2.00.

In the report, JMP Securities noted, “Progress continuing with enrollment in Phase 2b DCM trial; reiterate Market Outperform rating while lowering our price target from $3 to $2 on Aastrom Biosciences to reflect recent equity dilution. Aastrom reported a 2Q13 EPS loss of ($0.11), below our estimate and ahead of consensus. The company ended the quarter with cash of ~$4.5MM, and subsequently raised net proceeds of $8.7MM in an equity financing, which together management anticipates will be sufficient to fund operations through 2Q14. Enrollment is progressing in the Phase 2b (ixCELL-DCM) trial investigating ixmyelocel-T in subjects with dilated cardiomyopathy (DCM). Completion of enrollment is on track for 1Q14, with top-line results anticipated in 2Q15. Additionally, the company also expects to have data from 40 patients from the Phase 3 (REVIVE-CLI) trial in critical limb ischemia (CLI) in 2Q14. Our $2 price target is derived through 5x ixmyelocel-T sales of $468MM in 2020, discounted by 35% per year.”

Aastrom Biosciences closed on Thursday at $0.30.

Latest Ratings for ASTM

DateFirmActionFromTo
Oct 2013Maxim GroupDowngradesBuyHold
Mar 2013Ascendiant CapitalDowngradesStrong BuyBuy
Mar 2013Ascendiant CapitalMaintainsBuy

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