Maxim Group Thinks Onconova Therapeutics’ Stock is Going to Recover

By Jason Carr

Maxim Group analyst Jason McCarthy assigned a Buy rating to Onconova Therapeutics (NASDAQ: ONTX) today and set a price target of $6. The company’s shares opened today at $1.61, close to its 52-week low of $1.46.

McCarthy observed:

“The INSPIRE trial for Rigosertib in Myelodysplastic Syndrome (MDS) is approaching Interim Analysis (88 events) in 4Q17 with completion of enrollment in 1Q18 and top-line data (176 events) in 2H18. There are several scenarios that can play out in the interim analysis (see below and in prior notes). However, with a P3 trial nearing data, we continue to see ONTX shares trade at a “distressed” valuation stemming from a prior P3 failure (ON-TIME). INSPIRE, in our view, is an intelligently re-designed P3 study which we believe has a higher probability of success. The question is what may be keeping investors on the sidelines? We polled institutional clients to find out their concerns.”

According to TipRanks.com, McCarthy is a 4-star analyst with an average return of 4.5% and a 38.5% success rate. McCarthy covers the Healthcare sector, focusing on stocks such as Stellar Biotechnologies, Inc., ImmunoCellular Therapeutics, and Actinium Pharmaceuticals.

Currently, the analyst consensus on Onconova Therapeutics is Moderate Buy and the average price target is $6, representing a 272.7% upside.

In a report issued on November 9, H.C. Wainwright also reiterated a Buy rating on the stock with a $6 price target.

Based on Onconova Therapeutics’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $110K and GAAP net loss of $6.96 million. In comparison, last year the company earned revenue of $1.65 million and had a GAAP net loss of $1.6 million.

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Onconova Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which engages in the identification and development of oncology therapeutics. It focuses on discovering and developing small molecule drug candidates to treat cancer. The company was founded by Ramesh Kumar and E.