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


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

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

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