Chardan Still Skeptical Of Coversin, Reiterates Sell Rating On Akari Therapeutics

Madhu Kumar of Chardan Capital Markets maintains a Sell rating on Akari Therapeutics PLC (ADR) (NASDAQ: AKTX) ahead of the company's R&D Day on April 24.

In a research report published Monday, Kumar highlighted his skepticism surrounding the company's Fast Track designation of Coversin, a therapy for the treatment of paroxysmal nocturnal hemoglobinuria (PNH) in patients who have polymorphisms conferring eculizumab resistance. Specifically, the analyst highlighted the fact that Akari's stock soared nearly 130 percent since the announcement, but the market may have mistaken the designation to cover Coversin in PNH generally.

"We are very proud of the continued advancement of our Coversin program for the treatment of PNH in patients with or without polymorphisms," Gur Roshwalb, CEO of Akari Therapeutics said in a press release. "The FDA fast track designation recognizes the unmet need in patients with PNH who cannot be treated with the current standard of care due to polymorphisms."

Not So Fast

Kumar pointed out a 2014 study, which found that only 3.2 percent of PNH patients had Soliris resistance mutations. Moreover, for a disease with an incidence rate of 1.3 per million, Soliris-resistant PNH represents just 10 to 20 patients in the US per year.

As such, the analyst emphasized that Akari's designation represents "an extremely limited subset of PNH patients" and most certainly isn't for the broader indication.

Shares remain Sell rated but with a price target boosted from $5 to $6.50 on the analyst's model updates.

At last check in Monday's pre-market session, shares of Akari were down 8.86 percent at $14.60.

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