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Analysts Roar Praise For Aslan, But Leerink More Tepid

Elizabeth Balboa

The Street is making up its mind on May’s market newbies, and ASLAN PHARMACEUTICALS ADR REP 5 ORD (NASDAQ: ASLN) received its judgment Wednesday.

Two analysts issued Buy ratings and one a Market Perform. Here are the details on the more bearish thesis. 

The Rating

Leerink analyst Jonathan Chang initiated coverage of Aslan with a Market Perform rating and a $7 price target.

The Thesis

With a leadership team well-experienced in Asia, Singapore-based Aslan is developing varlitinib for regionally prevalent cancers.

“We view ASLN as well-positioned to execute on its clinical strategy with an Asia-focused development platform with multiple shots on goal and a catalyst rich 2H18/2019,” Chang said in a Wednesday note. (See the analyst's track record here.) 

Despite the optimism, the analyst said he's waiting for clinical validation for varlitinib in biliary tract cancer and proof of the pan-human epidermal growth factor receptor’s advantage in targeting HER4 before becoming more bullish on the stock.

In the second half of 2018, Aslan is slated to release data from a pivotal varlitinib combination trial in second-line biliary tract cancer; a Phase 1/2 varlitinib combination study in first-line biliary tract cancer; a Phase 2/3 varlitinib combination study in HER1/HER2 co-expressing first-line gastric cancer; and a Phase 2 trial of ASLAN003 in acute myeloid leukemia.

Price Action

Aslan shares were rallying 23.65 percent to $8.47 at the time of publication Wednesday afternoon. 

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Latest Ratings for ASLN

Date Firm Action From To
May 2018 Leerink Swann Initiates Coverage On Market Perform
May 2018 BTIG Research Initiates Coverage On Buy
May 2018 H.C. Wainwright Initiates Coverage On Buy

View More Analyst Ratings for ASLN
View the Latest Analyst Ratings

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