HCW starts PolarityTE at buy; PT $8


H.C. Wainwright initiated coverage of PolarityTE (NASDAQ:PTE) with a “buy” rating and price target of $8. The stock closed at $5.52 on July 5.

PolarityTE is developing tissue repair products based on its innovative cell activation technology. Its first product, SkinTE, is an autologous full-thickness skin replacement that can be used to accelerate the healing of both acute and chronic wounds.

“We believe SkinTE has the potential to revolutionize the $40-billion wound care market,” writes analyst Swayampakula Ramakanth.

SkinTE is supported by a wealth of preclinical and clinical evidence and has been shown to be superior to currently available wound care products in terms of safety, efficacy, and ease of use, he added.

In a recently published study in patients with diabetic food ulcers, 91% of patients who had previously failed standard-of-care therapies achieved complete healing within four weeks of SkinTE treatment, Mr. Ramakanth said.

SkinTE was approved by the FDA under the human cells, tissues, and cellular and tissue-based products pathway in December 2017 and has so far seen a limited launch. PolarityTE is expected to initiate the nationwide launch of SkinTE in 2020, he added.

Stephen Kilmer