Maxim Group Reiterates $5 Price Target on Mast Therapeutics (MSTX)

Maxim Group analyst Jason Kolbert reiterated a Buy rating and $5 price target on Mast Therapeutics (NYSE: MSTX) noting pivotal data in sickle cell ahead and pipeline progress.

Kolbert highlighted:

• Management provided a detailed update, highlighting key clinical and regulatory milestones in 2016 including the status of the pivotal phase III "EPIC" study (N=388) of vepoloxamer in sickle cell disease (SCD). We remain believers and enthusiastic.
• The EPIC study is now over 90% enrolled and is expected to complete enrollment in February. Top-line data should follow by Q216. As a reminder, vepoloxamer could be the first approved therapy for SCD in 50 years and the only drug for treating SCD pain crises (100,000 hospitalization per year). Adoption could be rapid.
• Mast is also set to initiate (January 7, 2017) dosing of vepoloxamer in SCD patients with renal insufficiency (SCD complication from severe disease), a subgroup of SCD patients which could provide additional dosing data to support the NDA filing (expected in 2H16 pending EPIC outcome).
• In the pipeline...Vepoloxamer (different formulation) is in an ongoing phase II study in heart failure is continuing to expand trial sites and AIR001 (sodium nitrite solution inhalation via nebulizer) phase IIa data (N=30) in heart failure is expected this month.
• Conclusion. We believe that Mast is continuing the march towards only the second drug approval in SCD and has made significant progress in other programs which could provide incremental catalysts in the short-term. Combined with a sub-$100M market cap and $41M in cash, we continue to see Mast as compelling risk/reward story.

For an analyst ratings summary and ratings history on Mast Therapeutics click here. For more ratings news on Mast Therapeutics click here.

Shares of Mast Therapeutics closed at $0.43 yesterday.

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