Maxim Group raised it price target for Sophiris Bio (NASDAQ:SPHS) to $6 from $4, citing better data of the company’s topsalysin drug candidate. The stock closed at $5.04 on Tuesday.
As the datasets for topsalysin continue to develop, the marketplace appears to be recognizing the potential in both oncology and benign prostatic hyperplasia,” writes analyst Jason Kolbert. “As a result, we are adjusting our assumptions on commercialization (timing and share).”
Mr. Kolbert said topsalysin demonstrated successful proof-of-concept data in a one-time treatment with no side effects in prostate cancer. “A 50% response rate represents a significant signal. We see topsalysin as a new paradigm in the physician prostate cancer armamentarium.”
“We just have a couple of questions?” Mr. Kolbert asked. “Will the response rate change if patients are dosed a second (or more) time? Can delivery be optimized? Given the opportunity, we believe Sophiris can unlock the value associated with PRX302 (topsalysin).”