Pluristem Gets a Buy Rating from Maxim Group

By Austin Angelo

In a report released today, Jason Kolbert from Maxim Group reiterated a Buy rating on Pluristem (NASDAQ: PSTI), with a price target of $2. The company’s shares opened today at $1.28.

Kolbert commented:

“Summary We recently spent time with Pluristem’s management team in Israel and reviewed in detail the thinking behind the current Phase III trial design. Pluristem is focused on showing the benefits of therapy in prolonging the time to an event. If patients can keep a limb a year longer, is the therapy viable and does it create value. We do believe the current statistical plan is well designed to show if a difference exists in the time to event analysis. What will be critical will be if US regulators will accept time to event in place of AFS for approval. It stands to reason that a treatment effect which prolongs time to event, (as is the standard on oncology) could suffice for approval in CLI. i.e. if the treated group keeps limbs longer, is the therapy approvable one and is there benefit? We must also consider changes in the regulatory landscape and what impact the adaptive pathway and 21st Century Act might have on regenerative medicine – cell therapy approval timelines. Given the depressed market capitalization of the company, ~$120M range and the balance sheet, post raise, (~$35M) we believe there will be enough positive news flow to support an increase in valuation.”

According to TipRanks.com, Kolbert is ranked 0 out of 5 stars with an average return of -13.9% and a 29.5% success rate. Kolbert covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, Arbutus Biopharma Corporation, and ContraVir Pharmaceuticals Inc.

Pluristem has an analyst consensus of Strong Buy, with a price target consensus of $2.75.

Based on Pluristem’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $0 and GAAP net loss of $7.86 million. In comparison, last year the company earned revenue of $0 and had a GAAP net loss of $7.2 million.

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Pluristem Therapeutics, Inc. is a biotechnology company engages in the provision of cell therapy development. It focuses on cell therapies for the treatment of diseases such as muscle injury, acute radiation syndrome, pulmonary arterial hypertension and others. Its products include PLacental eXpanded, PLX-PAD, and PLX-R18. The company was founded by Doron Shorrer on May 11, 2001 and is headquartered in Haifa, Israel.