Noble Capital Markets has reiterated its Outperform rating on Helix BioPharma Corp (TSE:HBP) (OTCMKTS:HBPCF), noting that the healthcare firm’s recent quarterly results had met expectations.
Noble also maintained its $2.50 price target on Helix’ BioPharma's stock, which traded up slightly to $1.49 a share in Toronto late Wednesday morning.
The Toronto-based company is developing an immune-oncology drug platform for the treatment of cancer that is designed to modify the tumor microenvironment to become hostile for fighting immune system cells.
Its lead drug, L-DOS47, is in Phase II clinical trials for the treatment of non-small cell lung cancer and pancreatic cancer.
Helix BioPharma on Monday reported second-quarter FY2020 results that included a consolidated net loss of $2.26 million, compared to $1.91 million in the prior-year quarter.
However, Noble noted that the increase in net loss was due to higher research and development expenses to support ongoing cancer clinical programs. Helix also has divested 51% of its stake in a Polish subsidiary and plans to divest the remaining 49% stake before the end of 2020.
Noble also said Helix BioPharma’s boost in its cash position “is welcome news.”
Helix announced that it has raised a total of $16 million this year, “which we believe is important as the company can utilize the capital to fund its ongoing clinical programs for the treatment of pancreatic cancer and non-small cell lung cancer (NSCLC),” Noble said.
Analysts added: “We believe that Helix's current share price does not fully reflect the value of the company's unique platform technology, which is designed to modify the tumor microenvironment. Helix's lead drug L-DOS47 is being developed for the treatment of pancreatic cancer and NSCLC, which combined represent a multi-billion dollar commercial opportunity. Based on the analysis of existing data, we believe positive results from ongoing clinical trials could potentially act as a positive catalyst for the shares. We are reiterating our Outperform rating and $2.50 target price.”
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