RE:RE:New 52-week high for S&P Biotech ETFlscfa wrote: Wainwright did not cut AEZS target price from $28 to $15 based on valuation multiples of the biotech sector. It slashed the target due to co. specific fundamentals.
At the bottom of the biotech market. The market is up a stunning 50% since the bottom and assets are valued in the context of the market and the other options available. We are in a different world and on the cusp of a potentia multi-year breakout in biotech. Also H.C. Wainwright had no idea what the new diagnostic deal will look like. That should be announced soon with the pediatric data. Gilles and Ronnie are likely thrilled for a reason. The merger also offers opportunities to streamline and for near term revenue. AEZS is also on the verge of potential 'go' clinical trial decisions and the announcement of a regulatory path forward. H.C. Wainwright didn't have these details. They will be coming. These can be major catalyts. We've seen CZO's near opportunities in Friday's news release. H.C> Wainwright's US$15 for AEZS, which works out to C$100 million in market cap, appears symetrical with what CZO could be worth. My guess is that CZO and AEZS should have a higher target given all considered than US$15 for AEZS and C$1.25 for CZO. CZO's main client is back and CZO is stronger than ever.