Analysts at Oppenheimer said on Thursday that shares of Actinium Pharmaceuticals Inc (NYSEAMERICAN:ATNM) are significantly undervalued and should be rated as Outperform with a US$5 price target because of catalysts in the next 12 to 18 months.
After attending a conference call Thursday, Oppenheimer said Actinium is approaching an inflection point on its outlook for a Phase 3 Sierra study of Iomab-B for bone marrow transplant patients. The drug also has clinical trial support from the foremost bone marrow transplant centers in the US.
"We believe that investors are little aware of the furious pace at which ATNM is updating the Iomab-B Phase 3 clinical trial, adding more Actimab-A indications and thoughtfully building out the management team," Oppenheimer analysts wrote in a research note. "We advise investors to carefully consider a misunderstood name."
Oppenheimer assigned the value of Iomab-B at US$2.60/share, applying a 6x mulitple to estimated 2025 sales of US$323mln. Along with other programs, the research analyst believes a target price of US$5 is justified.
The key downside risks to the rating, Oppenheimer wrote, is the failure of the Iomab-B study and another Phase 2 study for another drug to fight cancer.
Actinium Pharmaceuticals is a clinical stage biopharmaceutical company developing innovative targeted therapies for patients with cancers lacking effective treatment options.
Shares were down 1.3% to US$0.61 on Thursday.