Why CASI Pharmaceuticals Stock Rose Last Week



Stock price

On Monday, April 2, 2018, CASI Pharmaceuticals (CASI) stock opened at $4.20. It grew ~68% over the week to close at $7.01 on April 6. Its 52-week low was $0.91 on June 20, 2017.

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Reasons for the higher stock price

In January 2018, CASI Pharmaceuticals acquired a portfolio of 25 FDA-approved ANDAs (abbreviated new drug applications) from Novartis (NVS) subsidiary Sandoz. One ANDA has been tentatively approved by the FDA and three are pending FDA approval.

In April 2018, CASI Pharmaceuticals received a letter from China’s CDE (Center for Drug Evaluation) specifying that Evomela has been scheduled for review by the advisory committee for anti-tumor drugs on April 25 and 26, 2018. The CDE granted CASI Pharmaceuticals’ Evomela a priority review, as multiple myeloma is classified as a rare disease in China and Evomela has demonstrated a clinical advantage in trials.

On December 31, 2017, CASI Pharmaceuticals had net cash and cash equivalents of ~$43.5 million. In fiscal 2017, CASI reported R&D (research and development) and G&A (general and administrative) expenses of $7.6 million and $3.2 million, respectively, compared with $4.6 million and $4.8 million in 2016.

Increased costs due to the CFDA’s (China Food and Drug Administration) regulatory review of Zevalin and Evomela, along with preclinical activities in China, primarily attributed to the increase in R&D expenses in 2017. In 2017, CASI Pharmaceuticals reported a net loss of $10.8 million, compared with $9.5 million in 2016.

Analysts’ recommendations for CASI and peers

The one analyst tracking CASI Pharmaceuticals in April 2018 has recommended “buy.” On April 9, 2018, CASI had a 12-month target price of $7, which represents a 2.5% decline.

Of the ten analysts tracking Nektar Therapeutics (NKTR) in April 2018, ~90% have recommended “buy” or some equivalent. On April 9, 2018, Nektar had a 12-month target price of $97.50, which represents a ~3.0% decline.

Of the 17 analysts tracking Alnylam Pharmaceuticals (ALNY) in April 2018, ~76% have recommended “buy” or some equivalent. On April 9, 2018, Alnylam had a 12-month target price of $157, which represents ~59.5% growth.

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