Beyondspring Stock Price Rises 176% – Time to Buy BYSI Stock?
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Beyondspring (BYSI) stock rose 176% yesterday and hit its 52-week high of $30 before settling at $26.58. Should you still buy BYSI stock?
Beyondspring is a clinical-stage biopharma company working on immuno-oncology cancer therapies. Clinical-stage companies tend to be very volatile and rise or fall sharply after trial results or after a ruling from the FDA.
Beyondspring recent developments
BYSI released positive topline data for its lung cancer treatment. Beyondspring had tested a regimen containing its plinabulin versus chemotherapy on a group of patients with a form of lung cancer. The results were encouraging and showed better survival rates. The treatment would also fend off the side effects of chemotherapy.
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Positive trial results
“The treatment of 2nd and 3rd line NSCLC (non-small cell lung cancer), especially with EGFR wild type where tyrosine kinase inhibitors do not work, is an area of severe unmet medical needs,” said Trevor M. Feinstein, M.D., of the Piedmont Cancer Institute. He added, “The opportunity that plinabulin offers to these patients is not only to live longer, but also with significantly reduced severe neutropenia, which are both meaningful for these very sick patients.”
The company is now planning to apply for approval for plinabulin in China and the US. If the company gets the approval, it would provide another booster to the stock.
Dr. Lan Huang Beyondspring’s co-founder said “the strong results from DUBLIN-3 further validate our conviction that plinabulin, as an immune anti-cancer agent, has the potential to be a cornerstone therapy for many solid tumors.”
BYSI stock forecast
All six analysts polled by CNN Business rate BYSI stock as a buy or some equivalent. Its median target price of $39 is a premium of 46.7%. Its street high target price of $100 implies an upside of 276% over the next 12 months. The lowest target price of $37 is a premium of 39.2% over current prices.
Wall Street analysts have also taken note of positive trial results. Yesterday, H.C. Wainwright analyst Joseph Pantginis upgraded the stock from a neutral to buy and assigned a street-high target price of $100. Evercore ISI also raised the target price from $30 to $95. Pantginis admitted that the brokerage was “100 % wrong on NSCLC” and now sees “a dramatic shift in the thesis” for Beyondspring stock. He finds the stock’s current price levels as too low and says that they are “not reflective at all of the NSCLC indication.”
Beyondspring could go for a stock issuance
Meanwhile, it is very common for clinical-stage companies to announced a stock sale after a positive trial result. These companies burn a lot of cash and use the spike in their stocks after a positive trial result to raise more capital. We could see a sell-off in BYSI stock if it announces a stock sale. However, after the positive trial results, it looks like a good stock to buy despite the surge yesterday.
BYSI product pipeline
The treatment offered by Beyondspring could be a gamechanger as it would help patients choose an alternative over chemotherapy which is known to have several side effects. The market for lung cancer is expected to rise at a CAGR of over 10% and reach $12.84 billion by 2025.
In comparison, Beyondspring has a market cap of just over $1 billion. Apart from plinabulin, Beyondspring is working on several other treatments including protein degradation. According to the company, it is at “the forefront of research in the protein degradation platform, an alternative approach to cancer treatment in which disease-causing proteins are marked for early degradation.”
It is also working on several other treatments and has BPI-002, BPI-003, and BPI-004 as part of its pipeline. The successful commercialization of these products would help the stock move higher.
Beyondspring long term forecast
Being a clinical-stage company, BYSI is not making much revenue currently. Analysts expect the company to post revenues of $76.5 million in 2022. The revenues for the company would rise multi-fold it is can successfully commercialize plinabulin.
After the spike yesterday, Beyondspring stock has crossed above all key moving averages. The stock was facing a resistance at the 200-day SMA but has now surpassed that. Technically, the stock now looks in an uptrend and could rise more from these levels.
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