Posted By: Zacks Equity Research
Though the shares continue to trade near the bottom of their range, Cell Therapeutics (CTIC) is currently ranked a Buy by Zacks senior biotech analyst Grant Zeng, CFA. In his latest Buy report, he explains why he remains bullish on the company: “Cell Therapeutics, Inc. develops, acquires and commercializes novel treatments for cancer. Two pipeline products, Xyotax and Pixantrone, account for the late-stage oncology focus. In September, 2006, CTIC entered into a partnership agreement with Novartis for Xyotax and Pixantrone. We are optimistic about Cell Therapeutics' future, and believe the shares are attractive at current levels. “In our view, the Street is overly pessimistic on the development programs for Xyotax and Pixantrone. We continue to rate the stock a Buy, with a price target of $3.50. At the current price, Cell Therapeutics commands a market capitalization of approximately $207 million. Based on our 2008 revenue estimate of approximately $89.5 million, this equates to a 2008 Price / Sales ratio of only 2.3x. This is an enormous discount to the overall biotechnology peer group price/sales average of 10x 2008 revenues. “CTI shares dropped 75% on the news regarding the failure of STELLAR trials to meet its primary end-point. We believe the market is now discounting no Xyotax revenues in the coming years. We do not believe this will be the case. Although the market for Xyotax may be greatly reduced by targeting women only, Xyotax should still have commercial potential given the meaningfully improved side-effect and tolerability profile and superiority over paclitaxel.”
. Buon Fine settimana a tutti.
