JMP Securities Speculates How End Of Amgen Collaboration Could Affect BIND Therapeutics

In a report published Thursday, JMP Securities analyst Michael G. King reiterated a Market Outperform rating and $30.00 price target on BIND Therapeutics (NASDAQ: BIND).

In the report, JMP Securities noted, “BIND Therapeutics announces the close of its Accurin nanomedicine collaboration with Amgen (AMGN, NC); reiterate our Market Outperform rating and $30 price target based on our DCF, CAGR, and comparable company valuation methodologies.

"The research collaboration with Amgen, launched in January 2013, was directed at developing an Accurin-based formulation of an undisclosed proprietary small molecule for the treatment of solid tumors, BIND was eligible to receive up to $201MM in potential development and commercial milestones. Excluding these from our model (which was predominantly back-end loaded) bears an incremental negative impact to our valuation by DCF ($29.23 versus $31.74 previously).

"We retain a high level of conviction with BIND-014 and the Accurin development platform, supported by encouraging preliminary objective response data with BIND-014 in KRAS mutant NSCLC, compelling preclinical data from the ongoing collaboration with AstraZeneca (AZN, NC) using an Accurin formulation of barasertib, and the recently announced collaboration with Roche (RHHBY, NC) for non-oncology indications. We view the Roche collaboration as a source of future upside; however, it is difficult to discount at present given a lack of visibility. We remain buyers on any potential weakness resulting from this announcement.”

BIND Therapeutics closed on Wednesday at $12.88.