Roth Capital affirms Celator Pharmaceuticals (Nasdaq: CPXX) with a Buy rating and $22 price target after the company announced FY15 results earlier.
Analyst Joseph Pantginis noted that Celator posted FY15 EPS of ($0.57), which compares with the firm’s ($0.56) estimate.
Pantginis also commented: With historic data in hand and a significantly de-risked program, in our belief, we now look to the NDA and MAA filings in 3Q16 and 1Q17 respectively. Management has indicated to us that they do not expect the FDA to convene an Advisory Committee. We also believe there is a high likelihood for the company to deliver an ex-U.S. partnership for Vyxeos in the relative near term. We project an upfront payment in the range of $30-50 million and have already modeled a 25% royalty to Celator. Recall the company intends to market the drug in North America on its own. To this end, only a lean salesforce is required (~30 reps) due to the focused nature of AML. With a likely ex-U.S. partner coming, in our belief, the company has extended its cash runway another six months into 2Q17 and is potentially weighing its options for additional cash requirements in order to build out its commercial infrastructure. Vyxeos is a straightforward approach with nothing new for physicians to learn since they are known drugs, so 1) should be easy to adopt and 2) easy to explain to patients (made the old stuff better).
Source: Street Insider