What happened
The stock market as a whole had a fine Monday, but CTI BioPharma (CTIC) had a particularly good time of it. The China-based biotech's shares leaped nearly 5% on the back of not one but two positive analyst initiations.
So what
The two institutions launching their coverage of CTI BioPharma stock were Taiwan-headquartered SinoPac Financial Holdings and U.S. investment bank SVB Leerink. Both the former's Kenneth Shields and the latter's Andrew Berens were bullish on the stock, tagging it with the equivalent of buy recommendations. Both have also set their price targets at $13 per share -- nearly triple the stock's current level.
Neither analysis was available for dissemination, but this wasn't the first time prognosticators have expressed optimism about the company. In early September, Jefferies' Kelly Shi also initiated coverage on CTI BioPharma with -- you guessed it -- a buy recommendation and a $13 per share price target.
These moves come not long after the biotech reported its second-quarter results, which marked a major shift in its fortunes. It was that period in which the formerly clinical-stage company recorded its first sales of Vonjo. The drug, which treats a rare bone marrow disorder called myelofibrosis, brought in an encouraging $12.3 million in the quarter.
Now what
It's not unusual for analysts (and investors) to get excited about a biotech in the wake of a new product's approval and subsequent launch. We should bear in mind, though, that it's still early days for Vonjo, and the drug's future isn't assured despite those good second-quarter sales figures.
