A $6 Stock Hitting $25? Vascular Biogenics Could, Chardan Says

• Shares of Vascular Biogenics Ltd. VBLT have surged more than 108 percent in the past one month.
• Chardan Capital’s Gbola Amusa has initiated coverage of Vascular Biogenics with a Buy rating and price target of $25.
• Amusa expressed confidence in the company’s first-in-class cancer therapy, VB-111, in the treatment of three types of cancer.

Amusa included Vascular Biogenics among the leading names in the gene therapy domain that are expected to “generate excess returns in the coming 5-10 years.”

The company is in Phase II development of VB-111 in the treatment of ovarian and thyroid cancer and Phase III in in recurrent glioblastoma multiforme (rGBM).

“Unusually, the company's approach utilizes a gene therapy viral vector, VB-111, to treat cancers by causing endothelial cells in angiogenic blood vessels to express surface receptors, which leads to apoptosis. Tumors thereby lose their ability to grow by building new blood vessels,” the Chardan Capital report explained.

The Phase II data for the drug candidate has demonstrated meaningful efficacy signals in three of the worst types of cancer, with statistically significant overall survival benefit in combination with Avastin in rGBM, progression free survival in thyroid cancer and GCIG response in ovarian cancer.

Amusa expects VB-111 to witness sales of $684 million in 2025, following its launch in 2018. The drug has already shown efficacy in the treatment of three types of cancer with good tolerability and safety and has received Fast Track and Orphan Drug Designation, as well as special protocol assessment (SPA) by the FDA, for rGBM.