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TapImmune Poised To Become A Cell Therapy Leader, WBB Securities Says In Upgrade

TapImmune Poised To Become A Cell Therapy Leader, WBB Securities Says In Upgrade
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TapImmune, Inc. (NASDAQ: TPIV) will pursue a new approach to treating cancer through a proposed merger with privately held Marker Therapeutics, a WBB Securities analyst said in an upgrade note. 

The Analyst 

WBB Securities analyst Steve Brozak upgraded TapImmune from a Speculative Buy to a Buy and maintained a $5.50 price target.

The Thesis

TapImmune recently announced a merger agreement and reorganization with privately held Marker Therapeutics. The company then announced the formation of a Scientific Advisory Board after the close of the proposed merger May 16.

“We have previously commented in a note our continued interest in TPIV’s strategic move to merge with Marker, as the clinical assets carry data that cannot be overlooked, and the proposed management advisory, as well as directorship of the combined company place prominence on TPIV to be a leader in the cell therapy space,” Brozak said. (See the analyst's track record here.) 

The merger brings together personal know-how and more product candidates that will provide additional value in the new combined entity, the analyst said. 

“Using a sum-of-the parts valuation, we evaluate potential revenue streams from the TPIV200 ovarian cancer programs to be at $5 a share and marker product candidates derived from the MultiTAA platform to be $6 a share,” Brozak said.

“With 12.8 million shares currently outstanding and twice that amount at closing, we arrive at a 12-month price target of $5.50.”

TapImmune is also seeking to complete a strategic alliance with Baylor College of Medicine that would involve sponsored research, manufacturing support and the advancing of early-stage clinical trials at the institution, according to WBB Securities. 

The merger between TapImmune and Marker is set to close in the second quarter. The company will then be renamed and move to Houston, Texas.

Price Action

TapImmune shares were down 5.23 percent at $4.89 at the close Friday. 

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Photo courtesy of TapImmune. 

Latest Ratings for TPIV

May 2018WBB SecuritiesUpgradesSpeculative BuyBuy
Mar 2018WBB SecuritiesInitiates Coverage OnSpeculative Buy

View More Analyst Ratings for TPIV
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