Checkpoint Therapeutics Wins A New Bull As Company's 'Plan Is Quickly Coming Together'

Checkpoint Therapeutics Inc CKPT, a nano-cap therapeutics company that focuses on developing anti-cancer agents, has lost more than half of its value over the past few months but some analysts are bullish on the longer-term picture.

The Analyst

H.C. Wainwright's Joseph Joseph Pantginis, Ph.D initiated coverage of Checkpoint's stock with a Buy rating and $11 price target.

The Thesis

Checkpoint is a subsidiary of Fortress Biotech Inc FBIO and is working to create its own solely owned combination therapies against clinically and commercially validated cancer targets and provide pricing advantages to patients, Pantginis said in a note. The company has already developed a strategy to build its portfolio and its two lead assets, CK-301 and CK-101, are already considered validated drug targets with approved commercialized therapies.

"The selection of validated targets helps to reduce the development time and risk of the asset, in our belief," the analyst said.

Looking forward, Checkpoint has prioritized receiving approval from the U.S. Food and Drug Administration for its candidates for use as a monotherapy, the analyst said. A potential approval and commercialization could generate revenue which in turn would be used for funding to support its pipeline development.

As Checkpoint continues to release clinical data results, the company would be seen to be in a "position of strength with regard to business development" and could open the door to potential global partnerships, territorial agreements even bring a candidate forward on their own.

Price Action

Shares of Checkpoint have fallen 53 percent since June.

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