Oppenheimer Comments On 2 Biotech Stocks – Benzinga
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In separate reports, Oppenheimer analysts commented on the pipelines of two Biotech majors – Centene Corp (NYSE: CNC) and BIND Therapeutics Inc (NASDAQ: BIND), both of which have Outperform ratings.
The analysts believe that Centene’s growth would continue to be strong in the future years, in view of the company’s robust pipeline. Centene estimates the pipeline at $947B across the country and $132B in its markets.
In the report Oppenheimer noted, “The pipeline is driven primarily by a combination of traditional Medicaid, dual eligible and health insurance exchange members…Iowa is shifting its Medicaid population to managed care under a ~$4B RFP this summer. Not surprisingly, all the major insurers are part of 18 plans that have expressed interest. If Centene can build on its impressive RFP success, we estimate the contract can add $0.15-0.20/share.”
“Although the RFP is still not expected until May 1, Michigan is re-bidding its $5-6B managed care program currently overseen by 13 plans. While Centene is not serving this population, it did enter the state serving dual eligibles through its Fidelis acquisition. Each 10% of the market equals ~ $0.10/shr for CNC,” the analysts said.
BIND Therapeutics’ partnership with AstraZeneca Plc (NYSE: AZN) has made good progress, with preclinical studies showing AZD1152HQPA (AZD1152 Accurin) increased efficacy without the limiting bone marrow toxicity. AZD1152 is an Aurora kinase B inhibitor that has shown clinical activity in AML but is limited by delivery challenges (continuous IV) and toxicity (bone marrow).
“Models of DLBCL and SCLC have shown sensitivity to Aurora kinase B inhibitors, and AZD1152 reduced growth of these cell lines in vitro. Additionally, AZD1152HQPA showed equivalent or superior activity to AZD1152,” the analysts wrote.
“We remain positive on BIND’s Accurin platform noting that utility is broadly applicable beyond BIND-014 that improves targeting and delivery of approved docetaxel…We anticipate additional novel Accurin nanoparticle therapeutics will emerge from BIND, including potential approaches uniquely suited to immuno-oncology applications,” the report added.
The price target has been maintained at $76 for Centene and at $14 for BIND Therapeutics.
Latest Ratings for CNC
Date
Firm
Action
From
To
Apr 2015
Oppenheimer
Maintains
Outperform
Mar 2015
Barclays
Maintains
Overweight
Feb 2015
Barclays
Maintains
Overweight
View More Analyst Ratings for CNC
View the Latest Analyst Ratings
Posted-In: Analyst Color Reiteration Analyst Ratings
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Oppenheimer Comments On 2 Biotech Stocks – Benzinga
