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Scimitar Equity Issues Analyst Review of Aastrom Biosciences



Scimitar Equity, LLC has issued a review of Aastrom Biosciences, Inc. (NASDAQ:ASTM) 

"New CEO Executes Bold Vision, Financing and Reverse Split with Three Phase 2 Trials Enhancing the Valuation."
 
Scimitar initiates with a BUY ranking and maintains that the current momentum and share price appreciation should continue to propel ASTM to its designated valuation given substantial improvements in viability and sustainability associated with the company's recent financing, reverse split moves, and clinical development activities. In particular, positive and encouraging RESTORE-CLI Phase 2b interim results have provided a strong signal of the potential efficacy and safety of the company's autologous cell therapy in patients with critical limb ischemia. ASTM is also planning to announce IMPACT-DCM Phase 2 interim clinical trial results on all 40 patients with 6-month follow-up in Q4 2010. Finally, completion of enrollment in both RESTORE-CLI and IMPACT-DCM positions the company to complete those trials and begin planning for at least one pivotal Phase 3 trial in 2011. 
 
ASTM's stock is still held at a low valuation but will appreciate as execution continues. The new blended valuation model implies a pricing of $3.81 given 28.26 M shares outstanding and the fully diluted shares of 39.012 M. The Sum of the Parts estimation of $5.78 is discounted 20% and is significantly above this stocks current price of $1.72 within the trading range of $1.36 to $4.96. Shares of ASTM offer upside in the short and near-term but, markets remains volatile based on perceptions and sentiment.
 
 
This review is available at website: ASTM Initiation Review