Rodman starts Bio-Path at buy

Rodman & Renshaw has launched coverage of Bio-Path Holdings (NASDAQ:BPTH) with a “buy” rating and a 12-month price target of $5. The stock closed at $2.76 on Monday.

“In our view, Bio-Path’s unique liposomal delivery of antisense DNA has the potential to significantly improve treatment outcomes in elderly patients (≥60 years) with acute myeloid leukemia (AML),” writes analyst Raghuram Selvaraju.

“We believe the upside potential in Bio-Path near-term comes primarily from its lead candidate, BP1001, which down-regulates the Grb2 protein and is being investigated in AML and chronic myeloid leukemia (CML),” he added.

Based on the solid safety profile and preliminary efficacy shown so far, he said BP1001, in combination with low-dose cytarabine, has the potential to deliver positive efficacy in future clinical studies.

Mr. Selvaraju said the efficacy segment of a Phase 2 trial in AML is scheduled to begin in the second quarter this year and enroll 54 patients, with an interim analysis planned for the first 19 evaluable subjects, which may occur by the end of 2016.

Bio-Path also plans to initiate a Phase 2 trial with BP1001 in CML in the second quarter this year. BP1001 has been granted orphan drug designations in AML and CML by the FDA.