Bio Blast Initiated with a Buy at Rodman & Renshaw

By George MacDonald

Bio Blast (NASDAQ: ORPN) received a Buy rating and a $25 price target from Rodman & Renshaw analyst Ram Selvaraju on January 28. The company’s shares closed last Friday at $3.66.

Selvaraju said, “We are initiating coverage on Bio Blast Pharma, Ltd., with a Buy rating and a 12-month price target of $25.00 per share. Bio Blast is an emerging biotech firm focusing on platform-based solutions addressing rare diseases due to mitochondrial dysfunction and misfolding of critical function proteins. The firm’s lead candidate and sole clinical asset, Cabaletta™, is an intravenous (IV) formulation of the naturallyoccurring disaccharide trehalose. This agent has a benign safety profile and has shown statistically significant efficacy in a Phase 2 open-label trial in oculopharyngeal muscular dystrophy (OPMD), an ultra-rare orphan disease. In our view, peak annual sales in OPMD alone could approach $600M. Cabaletta™ is slated to enter a placebocontrolled Phase 2b trial in early 2016, and could complete pivotal testing by early 2018 with launch occurring later that year.”

Bio Blast has an analyst consensus of Moderate Buy.

The company has a one year high of $8.70 and a one year low of $2.58. Currently, Bio Blast has an average volume of 17.59k.

Financial bloggers on sites such as SeekingAlpha, investorplace.com and others, seem to have a Positive view on ORPN. When evaluating the opinions of financial bloggers over the last 3 months, 50% of bloggers have indicated a Bullish sentiment, while 50% have indicated a Bearish sentiment.

According to TipRanks.com, Selvaraju is a 3-star analyst with an average return of 0.2% and a 41.1% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Sciclone Pharmaceuticals, Asterias Biotherapeutics, and Prana Biotechnology Ltd.

Bio Blast Pharma Ltd is a development-stage biopharmaceutical company. It is engaged in the identification, licensing, acquisition, development and commercialization of drugs for rare and ultra-rare genetic and metabolic diseases.