UPDATE: MLV & Co Reiterates On Galectin Therapeutics Following Cohort 2 Results

In a report published Wednesday, MLV & Co analyst Vernon T. Bernardino reiterated a Buy rating on Galectin Therapeutics GALT, but lowered the price target from $16.00 to $27.00. In the report, MLV & Co noted, “Galectin Therapeutics (GALT) this morning announced results from the 2nd dose cohort of its GR-MD-02 (GR02) Ph 1 trial in patients with non-alcoholic steatohepatitis and advanced fibrosis (NASH-AF) that at first blush appear negative. Although the primary endpoints (EPs) of safety and tolerability with GR02 at 4mg/kg were met, cohort 2 study design protocol changes made a comparison with 1st cohort results impractical. Furthermore, although biomarker results hinted at GR02's activity, the delta (change over baseline) in the results overlapped into the negative. "While we believe 3rd cohort dosing results at 8 mg/kg will confirm GR02's safety, the full results of the GR02 Ph 1 study will take time to be fully interpreted, resulting in a delay in Ph 2 testing. However, we believe today's 60% pullback and investor reaction are overdone, and thus see current prices as a buying opportunity. We maintain our Buy rating, but driven by our previously published scenario analysis, we lower our PT from $27 to $16 to account for a likely delay in GR02 approval.” Galectin Therapeutics closed on Tuesday at $5.70.