PROLOR Biotech, Inc. (PBTH)

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Prolor Biotech (PBTH) which closed trading on Wednesday at $4.88/share had its coverage initiated by Oppenheimer who initiated the stock with an Outperform rating and a $7.00/share price target. The Nes Ziona, Israel-based firm, is a development stage biopharmaceutical company, engages in the development of proprietary versions of already-approved therapeutic proteins. Its technology, Carboxyl Terminal Peptide technology could be attached to an array of existing therapeutic proteins, stabilizing the therapeutic protein in the bloodstream and extending its life span without additional toxicity or loss of desired biological activity.

I think there are two key long-term catalysts for PBTH going forward. The first catalyst is going to be the continued development its therapeutic proteins and more specifically the development of its Carboxyl Terminal Peptide technologies and how those technologies can apply to a larger portfolio of previously-approved proteins in the future. The second catalyst in terms of PBTH is going to be the company's total-debt to total-cash ratio and how that ratio outpaces some of the company's industry based counterparts. Over the last 12 months PBTH has managed to demonstrate a total debt to total cash ratio of 0.00, due largely in part to the fact the company hasn't had any debt over the last 12 months, whereas biotech companies such as Ariad Pharmaceuticals (ARIA) and Nektar Therapeutics (NKTR) carry total debt to total cash ratios of 0.045 and 0.527, respectively.

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