Roth starts Moleculin Biotech at buy; PT $8

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Roth Capital Partners initiated coverage of Moleculin Biotech (NASDAQ:MBRX) with a “buy” rating and $8 price target. The stock closed at $1.69 on Dec. 20.

“Our Moleculin bull thesis is based solely on its liposomal anthracycline, Annamycin, as second-line treatment for acute myeloid leukemia (AML) patients who have failed front-line induction therapy,” writes analyst Jotin Marango.

“With a cleared IND and an orphan designation in hand, Moleculin is now ready to start dosing patients in an international Phase 1/2 study (U.S. and Poland),” he said, adding that initial data could begin to frame Annamycin’s activity and value in relapsed/refractory AML within 2018.

Annamycin's IND was cleared in September, and since then Moleculin has reported that over 14 qualified cancer clinics have requested participation in the study. Mr. Marango expects first patient dosing in January.