For Eleven Biotherapeutics, Cancer Trial Outcomes Could Be 'Major Catalyst'

Eleven Biotherapeutics, Inc. EBIO, a Cambridge, Massachusetts-based developer of targeted protein therapeutics, has been showing promising clinical data for TPT-based cancer treatments.

The stock could see significant upside if later-stage bladder cancer trials set for mid-2018 prove to be successful, according to H.C. Wainwright & Co.

The Analyst

Analyst Swayampakula Ramakanth initiated coverage of Eleven Bio with a Buy rating and $2 price target.

The Thesis

Eleven Bio’s Vicinium TPT has displayed safety and efficacy in multiple bladder cancer studies and is being evaluated through a Phase 3 VISTA study, which could prove to be a pivotal step in bladder cancer treatment, Ramakanth said in a Monday note.

“We believe the upcoming release of results from the VISTA study could be a major catalyst for the stock.”

Vicinium, like other TPTs, provides lower immunogenicity and better stability and tumor penetration, the analyst said. 

In previous Phase 1 and 2 studies, Vicinium was well-tolerated, demonstrated no dose-limiting toxicities and achieved a response rate of approximately 40 percent at three months, Rakamanth said. 

Price Action

Eleven Bio was trading up 7.6 percent at $1.13 at the time of publication Tuesday.

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