Canaccord Genuity analyst John Newman maintained a Buy rating on Delcath Systems today and set a price target of $21.00.
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John Newman has given his Buy rating due to a combination of factors related to Delcath Systems’ promising prospects in the treatment of metastatic uveal melanoma with liver metastases. The CHOPIN study, which evaluates the combination of CHEMOSAT with checkpoint inhibitors, shows potential for positive outcomes, particularly in its one-year Progression Free Survival (PFS) endpoint. This is seen as favorable, especially when compared to the limited efficacy of checkpoint inhibitors alone in liver metastases, which typically show a low response rate.
Furthermore, the Phase 1b portion of the CHOPIN trial demonstrated encouraging results with a median PFS of 29.1 months, significantly surpassing previous benchmarks. The upcoming presentation of Phase 2b CHOPIN data at the ESMO conference is anticipated to further validate these findings. Additionally, despite a price reduction due to 340b, Delcath’s Hepzato is expected to maintain strong growth in the U.S. market, with potential expansion into other cancer types such as breast and colorectal cancer, supporting the Buy rating.
Newman covers the Healthcare sector, focusing on stocks such as Delcath Systems, Marker Therapeutics, and Regeneron. According to TipRanks, Newman has an average return of -3.7% and a 35.35% success rate on recommended stocks.