Market Overview

H.C. Wainwright Triples Celator Valuation, Says Latest Trial Win Is Rare


On Tuesday, H.C. Wainwright & Co. issued a company note on Celator Pharmaceuticals, Inc. (NASDAQ: CPXX) after the company had a positive Phase 3 trial win in oncology, with a survival win in AML of their drug Vyxeos.

After the news, analysts at H.C. Wainwright reiterated their Buy rating while raising their price target from $7 to $20.

Andrew Fein and Emile Yu, analysts at H.C. Wainwright & Co., wrote, "We have redrawn our market model...while also accounting for what we view as a significant clinical benefit (9.56 months for Vyxeos vs. 5.95 months for 7+3; 31 percent reduction in the risk of death)...the survival benefit reported yesterday could certainly justify more aggressive pricing and penetration assumptions…"

Analysts at H.C. Wainwright gave a key highlight following the positive clinical data for Celator Pharmaceuticals.

1. M&A Potential

Analysts noted that the Phase 3 data that supports Celator's ability to treat patients with AML may create heightened takeover interest by some of the larger players in the pharmaceutical industry. While analysts are still waiting for additional data following trials, the potential of the drug to penetrate the very lucrative AML market, where patients pay as much as 75K for treatment, may cause significant acquisition interest.

In recent trading, Celator Pharmaceuticals has skyrocketed more than 372 percent as investors are drawn to the microcap's high potential drug portfolio.

Currently, Celator Pharmaceuticals is trading at $7.68, up over $6 dollars from yesterday's close.

Latest Ratings for CPXX

Jun 2016DowngradesBuyHold
May 2016DowngradesBuyNeutral
Apr 2016Initiates Coverage onBuy

View More Analyst Ratings for CPXX
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