UPDATE: H.C. Wainwright Initiates Coverage on PharmAthene

In a report published Monday, H.C. Wainwright & Co. analyst Andrew Fein initiated coverage on

with a Buy rating and $4.00 price target. Fein noted that shares represent an attractive point with “transformative” events over the next six months. The analyst wrote that the key drive will be the Arestvyr lawsuit relating to a failed merger with SIGA Technologies. H.C. Wainwright suggests that investors should “focus on a successful legal outcome which could provide PharmAthene with significant new capital. We expect management to use these proceeds as part of a broad strategy to reinvent the company by expanding the pipeline through licensing and mergers and acquisitions to create a diversified company with multiple therapeutic assets.” The analyst added the positive Phase I data of Valortim, a fully human monoclonal antibody in clinical development against inhalation anthrax for post-exposure prophylaxis and as a therapeutic. Phase 1 data revealed Valortim to be safe and well-tolerated to healthy volunteers and no serious adverse effects. In addition to Valortim, Bioscavenger, a recombinant human butrylcholinesterase (rBChE) in development for pre- and post-exposure therapy for the battlefield or for use in nerve attacks on civilian populations, also performed well in Phase 1 studies. Fein reported, “Phase 1 data showed Bioscavenger was well tolerated with no serious adverse events or evidence of immunogenicity. We look for PharmAthene to advance this program following Department of Defense funding.” Shares of PharmAthene closed at $1.90 on Friday and is currently trading up 5.26% at $2.00.