Analysts Roar Praise For Aslan, But Leerink More Tepid

The Street is making up its mind on May’s market newbies, and ASLAN PHARMACEUTICALS ADR REP 5 ORD 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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