'Kadmon Offers A Diverse Clinical Pipeline, And Value Optionality,' H.C. Wainwright Says
H.C.Wainwright & Co. initiated coverage on Kadmon Holdings Inc (NYSE: KDMN) with a Buy rating and a price tag of $25, citing varied clinical pipeline.
Analysts led by Andrew Fein categorized biotech firms into three sections. The first category belonged to those that have proven track record, whereas the second related to clinical agent/class with a unique MoA. The third category is a de-risked and an established MoA.
"In our view, Kadmon combines the best features of those three categories in one company. First, it has on board many from the old Imclone team, who have done this all before successfully (remember that in biotech people typically perform more reliably than science)," the analysts said.
The brokerage pointed to a few factors that would help the company an advantageous position. For instance, its program on kinase inhibitors has a history of being an active agent in the event of defining the target patient correctly. Secondly, its clinical leads have an advantage of expanding into others even if it meant being successful on any one, i.e., EGFR or ROCK2.
H.C. Wainwright believes Kadmon Holdings has an experienced management, providing value proposition within the biotech spectrum and that the parallel hunt for a number of clinical threads de-risk the company. The lead analyst confidence is that even if the company could achieve success only in a few of these clinical threads, it would be able to reward investors.
On Friday, shares closed at $9.97, down 0.80 percent.
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Latest Ratings for KDMN
|Aug 2016||Citigroup||Initiates Coverage on||Neutral|
|Aug 2016||JMP Securities||Initiates Coverage on||Outperform|
|Aug 2016||H.C. Wainwright||Initiates Coverage on||Buy|
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