Here's RBC's take on the TKMR / OnCore merger. They raised the price target to $35
Our view: We're raising our price target to $35 to account for the synergy of TKMR/OnCore and the higher likelihood of success that a Hep B drug will come out of the plethora of 8 candidates (see page 4 pipeline exhibit) now under one roof. The long-term possibilities and combinations of drugs are seemingly endless and we see impressive long-term upside.
We believe TKMR stock will keep going higher and the merger of TKMR and OnCore Biopharma creates the best "pure-play" Hep B pipeline company in the industry. We have said Hep B is early and evolving and investors need to pay a lot more attention. We think these stocks will go up over the next 1-2 years as drugs advance into the clinic and show some proof of concept. Over a few years, some big developments could occur, particularly with TKMR, which combined with OnCore (deal should close in 2-3 months) has a full armamentarium of drugs to work with, combine, and find the best regimen to cure Hep B -- a $5-20B TAM market opportunity that is likely to develop over the next handful of years.
We are raising our price target to reflect where we think the stock can go this year based on:
1) investors have not yet fully digested what's going on here given it's a busy week at a major industry conference;
2) OnCore was private and under the radar for most institutional investors;
3) the leadership team is extremely strong and experienced with many former members of Pharmasset, which sold to GILD for $11B, now leading OnCore and will spearhead Hep B development;
4) combining the TKMR team, TKM-HBV, and RNAi platform adds another piece to the puzzle.
Our price target and pro-forma model reflects an assumption of doubling the share count for the combined entity.
Lake Street Capital Markets initiated coverage on EXACT Sciences Corporation EXAS with a Buy rating and $33 price target. Analyst Bruce D. Jackson noted that since “Cologuard has obtained a $492.72 per test reimbursement rate from Medicare, we think there is upside potential for test revenue during 2015 that can feed positive sentiment on the stock.”
“There may be questions about 2016 and beyond as to whether commercial insurance companies will cover the test (they will, in our opinion) and the sustainability of that price (it’s not, in our view), but ultimately we think this experienced management team can capture a significant share of a large potential market.”
The firm pegged “the future addressable market potential for Exact at $4 billion. This is based on a blended ASP of $220 per test and roughly 17 million tests a year (80 million eligible people, a 65 percent current compliance rate, 3-year screening interval).”
Jackson observed that “Exact has $299 million in cash that can be used for development projects and acquisitions to expand the product portfolio.”
The $33 price target was based on 5x the firm’s 2019 EV/Revenue estimate of $839 million discounted at 10 percent. Jackson suggested using “share price pullbacks to accumulate shares.”
Exact Sciences (EXAS) PT Raised to $32 at Goldman Sachs
December 18, 2014 6:56 AM EST
Goldman Sachs reiterated a Buy rating and raised its 6-month price target on Exact Sciences (NASDAQ: EXAS) to $32.00 (from ...
William Blair Comments On Exact Sciences Following Public Offering
December 16, 2014 5:05 PM EDT by Editor Ben Mahaney in Exclusively Published • Healthcare
William Blair analyst Brian Weinstein maintained an Outperform rating on Exact Sciences (NASDAQ:EXAS), as the company announced a bought deal for 4 million shares of common stock at a price of $25.75 per share, with the option for the two underwriting banks to purchase an additional 600,000 shares. No price target was provided. Weinstein observed, “This is yet another offensive raise for the company as it looks to pursue opportunities to accelerate adoption. The terms of intended use listed in the press release include funding the expansion of Cologuard commercialization activities, and we expect to hear more specific details about those efforts at the J.P. Morgan Healthcare Conference in January.” The analyst added, “We remain strong supporters of this company and this stock and believe that the long-term opportunity for investors is unmatched by any name on our list. However, we caution that near-term performance could be choppy, given what we believe may be aggressive short-term Street estimates and uncertainty about near-term uptake as the company begins the commercialization process.”
Experimental Drugs Considered for New York Ebola Patient
By Robert Langreth - Oct 25, 2014
The team at Bellevue Hospital Center treating Craig Spencer for Ebola is considering any and all experimental drugs or other treatments that might help him, an adviser to New York Mayor Bill de Blasio said. Doctors treating Spencer will consider “literally any and all possible therapies that might be available,” including various experimental Ebola therapies or blood transfusions from survivors, Irwin Redlener, director of the National Center for Disaster Preparedness at Columbia University and special adviser to de Blasio, said yesterday in a telephone interview.
“All bets are off with this,” Redlener said. “If it is necessary to save his life, if it is available, it will be tried.” In terms of experimental therapies, “I don’t know whether anything has been started or not, although I am positive it has been under discussion.” In the meantime, the focus is on providing high-quality supportive care, he said.
Spencer, the first patient to be diagnosed with Ebola in New York, was in stable condition at an isolation unit at Bellevue, New York City Health Commissioner Mary Bassett said yesterday at a briefing. Spencer was rushed to the hospital Oct. 23 after coming down with 100.3 fever. Tests later confirmed the virus.
Treatment So Far
Spencer was talking on the phone yesterday with family and friends, Bassett said. His treatment so far includes supporting his electrolytes and fluid balance, and carefully monitoring his vital signs, another official said at the briefing. An emergency medicine doctor at Columbia University-New York Presbyterian Hospital, Spencer worked with Doctors Without Borders in Guinea treating Ebola patients. He returned Oct. 17 to New York.
“It is not likely” that Spencer will be transferred to another hospital with more experience treating Ebola patients, Redlener said. In addition to help from expert
great news; thx for sharing!