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Cleveland BioLabs, Inc. (NASDAQ:CBLI) is a drug discovery and development company, utilizing its discoveries regarding apoptosis to treat cancer and protect normal tissues from exposure to radiation and other stresses. The company is developing its compounds for Biodefense, treatment of cancer and tissue protection due to external stress.

We are excited about the company's robust pipeline of clinical candidates, its unique positioning, and the immense market potential if the company can successfully develop and commercialize the compounds. We maintain our Buy rating on the stock with a revised target price of $4.50.

The company has expedited development status for both CBLB502 and CBLB612 under the FDA's "Animal Efficacy Rule." Additionally, Curaxin CBL102 was fast tracked to phase II trials because of the compound's established efficacy in prior human use.

Cleveland BioLabs drug candidates target niche markets and are being developed for various indications such as cancer, cancer treatment side effects and radiation protection. Protectan CBLB502 has a market potential of over $300 million in the U.S. alone.

The company's stock price plummeted in January 2008 on news of the DoD rejecting Cleveland's bid for a defense contract. We continue to believe that the company's current valuation looks attractive. Therefore, we advise investors to accumulate Cleveland shares at current levels.

Maharathi Basu contributed to this report.

Source: Cleveland BioLabs: Robust Pipeline, Attractive Valuation