Biopharma company Ocean Biomedical, Inc. (NASDAQ: OCEA) on Thursday revealed that Taglich Brothers initiated coverage on the company with a share price target of $20. In an equity analyst coverage report, Taglich Brothers said the target price implies that the shares could appreciate nearly four-fold over the next twelve months.
“We are honored to see independent institutional research analyst coverage recognizing the strength of our diverse programs in oncology, fibrosis, and infectious disease, which we are hopeful may someday have a large impact in multiple disease populations,” commented Dr. Chirinjeev Kathuria, co-founder and executive chairman of the company.
Ocean Biomedical is a healthcare company focused on clinical programs in oncology, fibrosis, infectious disease, and inflammation. The business model involves partnerships with scientists, research universities, and medical centers for developing and commercializing their discoveries.
“OCEA’s valuation improvement prior to commercialization of its drug candidates is likely to occur as additional patents that protect its technology methods are issued. Also, investors are likely to see valuation improvement as additional studies are released indicating the underlying mechanisms of action for its drug candidates appear to be working, as well as obtaining additional funding to bring the candidates through the commercialization process,” said the equity analyst coverage report.
According to Taglich Brothers, the rating and price target reflects OCEA’s therapeutic candidate programs within its three subsidiaries of oncology, fibrosis, and infectious disease. The programs are supported by a high level of sophisticated technology for the company’s drug candidates that have the potential to treat patients suffering from non-small cell lung cancer, brain cancer, idiopathic lung fibrosis, and a rare orphan disease called Hermansky-Pudlak syndrome, as well as vaccine and therapeutics to treat and prevent malaria.
(Source: Ocean Biomedical, Inc.)
“We are pleased to see our unique business model and our promising science gaining more coverage by analysts as we take the systematic steps needed to advance our programs as efficiently as possible into the clinic,” said Ocean Biomedical’s CEO, Elizabeth Ng.
The report stated that the scientific team led by the company’s scientific co-founders Dr. Jack A. Elias and Dr. Jonathan Kurtis further supports Taglich Brothers’ expectation that the company can bring therapeutics through the clinical process to commercialization. Their research enabled Ocean Biomedical to fund the programs through past and ongoing grants of nearly $124 million.
“It is gratifying to see the close attention being paid to Ocean Biomedical’s work as we build a company that has long-term potential to be high impact for patients and stockholders,” said Suren Ajjarapu, a director of Ocean Biomedical.