Roth resumes coverage of Galectin Therapeutics

Roth Capital Partners resumed coverage of Galectin Therapeutics (NASDAQ:GALT) with a “buy” rating and $3 price target. The stock closed at $1.52 on Friday.

“In our opinion, Phase 1 data demonstrated Galectin’s GR-MD-02’s positive effect on NASH fibrosis biomarkers,” writes analyst Sa’ar Yaniv.

“While we are expect that the 30-patient placebo-controlled Phase 2 study will show an effect on fibrosis, we are unsure of the magnitude the 16-week study can have on fibrosis and related biomarkers,” he added.

In addition, since the study only has 15 patients in the active arm and 15 in the placebo arm, “we are also unsure whether it would be sufficient to demonstrate statistical significance,” he suggested. Data from the study is due in September.

With the controversy surrounding the Phase 1 study, Mr. Yaniv said Galectin would need to show convincing efficacy to quiet any dissenting voices.

Galectin also is expected to report data from the psoriasis Phase 2a study in September. “This small, 10-patient study, demonstrated some efficacy in interim results analysis, but with no placebo, data will need to show significant effect on psoriasis to woo investors,” he added.