Morgans notes that access to capital within the Biotechnology sector has thinned, as evidenced by recent market offerings.
As a result, the broker no longer views some of its previous funding assumptions for Antisense Therapeutics as viable. After marking-to-market these assumptions, the company valuation is significantly diluted and the target price falls to $0.27 from $0.58.
The analyst is more reacting to investor caution around funding, as there is no tangible reason as yet to believe stated timeframes for achieving clinical progression can’t be met. The Speculative Buy rating is unchanged.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $0.27.Current Price is $0.08. Difference: $0.19 – (brackets indicate current price is over target). If ANP meets the Morgans target it will return approximately 70% (excluding dividends, fees and charges – negative figures indicate an expected loss).