UPDATE: MLV & Co Reiterates On Galmed Pharmaceuticals Ltd As Aramchol Grabs FDA Fast Track Designation

In a report published Wednesday, MLV & Co analyst Vernon T. Bernardino reiterated a Buy rating on

, and raised the price target from $19.00 to $24.00. In the report, MLV & Co noted, “Galmed Pharmaceuticals (GLMD) yesterday announced FDA approval for Fast Track Designation of Aramchol for the treatment of non-alcoholic steatohepatitis (NASH). We view the news as positive, however, believe lack of recognition continues for Galmed's potential to be a fast follower in the NASH competitive landscape. With the IND for study of Aramchol in all fatty liver disorders filed in July, the path is now clear for Galmed to ramp up all of its liver disease clinical development programs and quickly gain ground on the competition. We make slight changes to our models, as we now expect a higher probability of approval for Aramchol in 2020. Thus, we maintain our Buy rating on GLMD shares but raise our PT from $19 to $24. We look for initiation of an out-US Ph 2b study in 4Q14 with Aramchol in patients with NASH who also suffer from obesity and insulin resistance as the next catalyst for the stock.” Galmed Pharmaceuticals Ltd closed on Tuesday at $8.93.