These 2 Penny Stocks Are Poised for a Big Rally, Says Oppenheimer
TipRanks
Tue, August 9, 2022 at 5:39 PM
Gamida Cell (GMDA)
The first potentially high-yielding penny stock we’ll look at is Gamida Cell, a clinical-stage biopharma researcher with a focus on cell therapy treatments for severe blood disorders and blood cancers. The company features a proprietary research platform using nicotinamide to expand on various natural cell types, especially natural killer (NK) cells while maintaining their potency. Moving from this platform, the company has developed omidubicel, a new drug under investigation as a treatment for hematological malignancies.
Omidubicel has completed Phase 3 testing in that area – blood cancers – and the company has progressed to the Biologics License Application to the FDA. The next regulatory step is review from the agency, with a PDUFA date of January 30, 2023. According to the company, ‘If approved, omidubicel will be the first allogeneic advanced stem cell therapy donor source for patients with blood cancers in need of a stem cell transplant.’ Gamida also has a Phase 1/2 study ongoing, investigating omidubicel as a treatment for severe aplastic anemia.
Also on the clinical track is Gamida’s second drug candidate, GDA-201. The drug is being evaluated in the treatment of non-Hodgkin Lymphoma. A clinical hold from last fall was removed earlier this year, and Gamida is proceeding with Phase 1/2 clinical trials.
Based on the potential of the company's drug candidates, and its $2.09 share price, Oppenheimer analyst Mark Breidenbach thinks that now is the time to get in on the action.
Breidenbach sees the likely FDA approval of omidubicel as the main catalyst for this stock, writing: “We remain confident in omidubicel’s regulatory approval based on its strong Phase 3 data... Relative to unmanipulated cord blood, omidubicel demonstrated faster neutrophil engraftment and platelet recovery— translating to significant reductions in serious infections and hospitalization time. We believe omidubicel could represent an attractive new option due to its reliable procurement speed (~30 days) and near-universal HLA compatibility... In preparation for the potential launch, Gamida has engaged with >45 high-volume US transplant centers and has begun to proactively educate payers to help ensure coverage shortly after approval."
To this end, Breidenbach puts an Outperform (i.e. Buy) rating on Gamida shares, and his $15 price target suggests potential for a whopping 618% upside in the next 12 months. (To watch Breidenbach’s track record, click here)
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