Roth Capital: Buy Plasmatech Bio, It's Worth $16/Share And Is Assembling A 'World-Class' Portfolio

In a report published Thursday, Roth Capital analyst Elemer Piros initiated coverage of

with a Buy rating and a price target of $16. PlasmaTech develops gene and protein therapies for rare diseases. The company's current developmental portfolio includes three distinct gene therapies and a protein replacement program for inherited orphan disorders. The company has one of the most comprehensive preclinical packages in the field of gene therapy. "PlasmaTech demonstrated that correction of enzyme deficiency in the brain is achievable by IV infusion of the drug for both Type A and Type B variants of Sanfilippo syndrome," analyst Elemer Piros mentioned. PlasmaTech is anticipated to initiate a clinical trial for such gene therapy this year. The company has also recently licensed a gene therapy program treating juvenile Batten disease, a disease in which children lose speech, have seizures, suffer from dementia and die during childhood. "This program could enter the clinic in 2016," Piros added. Plasmatech's patent protected process for purification of therapeutic proteins offers an alternative to an ancient method and could increase production yields tenfold. In the report Roth Capital noted, "…the first such protein product for a rare disease could reach the market by 2017."