Market Overview

Analyst: Weakness In Spark Therapeutics Is Overdone

Analyst: Weakness In Spark Therapeutics Is Overdone

Spark Therapeutics Inc (NASDAQ: ONCE) reported during the ASH conference an update concerning its SPK-8011 therapy, which has many investors concerned.

The Analyst

Cantor Fitzgerald's Elemer Piros maintains an Overweight rating on Spark Therapeutics's stock with an unchanged $105 price target.

The Thesis

Spark presented additional Hemophilia A data during the ASH event, which "raises new questions on variability of factor VIII expression levels associated" with the therapy, Piros said in a note. While the questions may be valid, the stock's 40-percent plunge Monday could be considered an "overreaction" as it's "not entirely dissimilar from when eventually well managed immune responses were observed in Hemophilia B."

"Although initial results demonstrated signs of a dose response (particularly patient 3), a sudden decrease in factor VIII expression was observed - mediated by the precautionary treatment with corticosteroids - in the two patients treated at the higher dose," the analyst said. "Additionally, a plateau effect was not yet observed in three of the four more recently treated patients, with the second patient demonstrating an increase in expression at approximately six months of follow-up and expression level of 37% normal at last follow-up."

Bottom line, Spark's program should still considered to be "early and promising" and while future data releases will "further characterize these challenges" the company's management team does have a positive track record of "successfully addressing them."

Price Action

Shares of Spark hit a new 52-week low of $41.06 before slightly rebounding to $44.47, still a decline of 35 percent for the day.

Related Links:

Jefferies Calls Bluebird Bio The 'Star' Of This Year's ASH Meeting

9 Notable Biotechs Presenting At This Year's ASH Meeting

Latest Ratings for ONCE

Mar 2019BarclaysDowngradesOverweightEqual-Weight
Feb 2019Stifel NicolausDowngradesBuyHold
Feb 2019BernsteinDowngradesOutperformMarket Perform

View More Analyst Ratings for ONCE
View the Latest Analyst Ratings


Related Articles (ONCE)

View Comments and Join the Discussion!

Posted-In: ASH Cantor Fitzgerald Elemer Piros SPK-8011 TherapeuticsAnalyst Color Top Stories Analyst Ratings Best of Benzinga

Latest Ratings

WKHSRoth CapitalMaintains15.0
HCKTRoth CapitalMaintains22.0
ARECRoth CapitalInitiates Coverage On7.5
SLABWells FargoMaintains180.0
PENWells FargoMaintains310.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at