By M.E. Garza
Another analyst thinks Cleveland Biolabs (NASDAQ:CBLI) is headed higher. The stock has been initiated with an Outperform rating and a target price of $10 by Wedbush.
It further notes that human studies have shown CBLB502 to be safe in a Phase I/II study; animal studies have demonstrated protection against ARS.
The estimates for the total market for CBLB502 is $300 million in annual revenues, taking into account military, civilian and likely foreign demand. Wedbush expects that the company will be awarded a contract to supply the U.S. government with CBLB502 to prevent ARS in the event of a radiological event.
BioMedReports has been telling our readers about CBLI since the stock was under $3, and we continue to believe that the firm will receive another large government grant in somewhere between $50 and $100 million dollars in the very near future. We noted that fact after a recent presentation by the company and feel that this grant will lead to orders for the drug from not only the U.S. government, but also some of its allies- namely Israel.
We also continue to beleive that CBLB502 is poised become one of the most interesting cancer immunotherapy drug candidates in the space, given the recent news announcement made by the company. In fact, as I pointed out in a recent article, 502 as a cancer treatment may be further along than most of the market anticipates given the human safety and manufacturing data that is already in the hands of the FDA given the drugs fast tracked development as a treatment for ARS.
In addition, as I said in my earlier report, what Cleveland is proposing here is an off-the-shelf drug that does not have to be tailored to the specific patient. It does not involve the timely and expensive re-programming of the body’s dendritic cells and perhaps because of those factors, the potential cost of treatment would not be as prohibitive as some of the existing immunotherapy drugs which are on the way to market now.
We urge our readers to research the company and to read our previous articles and coverage on the company as we believe shares will appreciate in price substantially from these levels.
On Tuesday morning, we issued a trade alert to our subscribers after Ray Dirks published his report on the company and re-iterated his own BUY recommendation. Shares rose and are currently trading just under their 50-day moving average and significantly higher than their 200-day moving average.
Disclosure: Long CBLI