Time To Buy Casi Pharma, HC Wainwright

In a report published Tuesday, HC Wainwright analyst Ching-Yi Lin initiated coverage of

with a Buy rating and a price target of $2.50. Casi is a clinical stage company focused on developing and commercializing oncology therapeutics for both the US and Chinese markets. "The company's lead internal drug candidate, ENMD-2076 is an Aurora A, multi-kinase inhibitor in development to treat multiple indications including: triple negative breast cancer (TNBC), soft tissue sarcoma (STS), ovarian clear cell carcinoma (OCCC) and fibrolamellar carcinoma (FLC)," analyst Ching-Yi Lin wrote. While in the US and Canada, Casi is in Phase 2 trial in multiple indications, in China, it is entering Phase 2 beginning with TNBC. "While data thus far has been mixed, the company is exploring predictive biomarkers to use with ENMD-2076," Lin said. In China, Casi licensed three oncology therapeutics for development from

(rated Buy). Two among them have already received FDA approval, while the third has established positive POC results, which reduces the regulatory and developmental risks. "Though the revenue potential is relatively modest, we see these therapeutics as the "low hanging" fruit of the company's portfolio. Additionally, we have not factored in valuation for ENMD-2076 and believe there is minimal downside while there are multiple opportunities for ENMD-2076 to achieve positive POC results. As such, we see ENDM-2076 as an upside optionality to the current stock valuation," the HC Wainwright report added.