Analysts Offer Insights on Healthcare Companies: ImmunoCellular Therapeutics (NYSE MKT: IMUC) and Depomed (NASDAQ: DEPO)

By Jason Carr

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on ImmunoCellular Therapeutics (NYSE MKT: IMUC) and Depomed (NASDAQ: DEPO) with bullish sentiments.

ImmunoCellular Therapeutics (NYSE MKT: IMUC)

Roth Capital analyst Joseph Pantginis reiterated a Buy rating on ImmunoCellular Therapeutics (NYSE MKT: IMUC) on November 23 and set a price target of $5. The company’s shares opened today at $2.90, close to its 52-week low of $2.49.

Pantginis wrote:

“We believe the update continues to bode well for the ongoing Phase III, which unfortunately will not read out for at least five years. We maintain our Buy rating though lowering our split adjusted target from $8 to $5. Event IMUC presented two oral presentations at SNO. Recall the Phase II trial of ITC-107 in glioblastoma indicated a survival advantage in the treated group as compared to the control group. A correlation was observed between a measurable anti-tumor T cell response and survival in HLA-A2+ patients; therefore, monitoring the immune response during the Phase III registration trial should add a layer of support and guidance to the trial results and its interpretation. In the second presentation, long term follow up is presented for a study which was completed in 2010. The data shows that 19% of patients had long-term remission of greater than 8 years. In addition, 38% of patients demonstrated long-term survival of greater than 8 years. Furthermore, the data show a correlation between survival and cancer stem associated expression, and a trend toward greater CD8+ T cell cytokine responses in long- term survivors.”

According to TipRanks.com, Pantginis is ranked 0 out of 5 stars with an average return of -10.9% and a 36.4% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals, Inc., Applied Genetic Technologies, and Strongbridge Biopharma Plc.

ImmunoCellular Therapeutics has an analyst consensus of Moderate Buy.

Depomed (NASDAQ: DEPO)

Roth Capital analyst Scott Henry reiterated a Buy rating on Depomed (NASDAQ: DEPO) today and set a price target of $27. The company’s shares opened today at $20.37.

Henry noted:

“We view this product as the primary fundamental focus for DEPO investors. We view this week’s data as in-line with expectations. Weekly Nucynta Tracker. Nucynta (tapentadol) is an opioid-based treatment for pain. It is a schedule 2 controlled substance by the DEA. Nucynta IR (or simply “Nucynta”) is a shorter-acting treatment (4-6 hours) indicated for the management of moderate to severe acute pain in adults. Nucynta ER (2X/day) is indicated for the management of 1) pain severe enough to require around-the-clock, long-term opioids, and 2) neuropathic pain associated with diabetic peripheral neuropathy . This week’s data – Nucynta IR. Nucynta IR total prescriptions of 9,855 represented a year-over-year decrease of 0.6% (on a 4-week rolling basis) versus -0.9% last week, and minus 2-3% in 1Q16. This represents an annualized run rate of $151.0 million at a price point of $300 per prescription. Our expectations – Nucynta IR. DEPO did not actively manage Nucynta until June 2015. We target comps to be +1-2% year-over-year throughout 2017 (recently reduced from +5%).”

According to TipRanks.com, Henry is a 1-star analyst with an average return of -2.0% and a 38.2% success rate. Henry covers the Healthcare sector, focusing on stocks such as Acerus Pharmaceuticals Corporation, Flamel Technologies S.A., and Apricus Biosciences Inc.

Depomed has an analyst consensus of Moderate Buy, with a price target consensus of $28.