Equity Briefing : Maxim Reiterates Buy Rating and Raises Medgenics price target to $14

Following news this morning that Dr. Sol Barer, former Chairman and CEO of Celgene Corp. (NASDAQ:CELG), has agreed to become chairman of the board of directors at Medgenics, Inc. (AMEX:MDGN) and (AIM:MEDU, MEDG), analysts at Maxim say a series of positive news supports the recent significant price appreciation. In a note to clients, Echo He M.D, Ph.D...

Following news this morning that Dr. Sol Barer, former Chairman and CEO of Celgene Corp. (NASDAQ:CELG), has agreed to become chairman of the board of directors at Medgenics, Inc. (AMEX:MDGN) and (AIM:MEDU, MEDG), analysts at Maxim say a series of positive news supports the recent significant price appreciation.

In a note to clients, Echo He M.D, Ph.D., an analyst at Maxim Group Equity Research, states that the cost-effectiveness of MDGN's products indicates significant future shares in sizeable markets; noting:

"As a novel gene therapy, Biobump's ability to deliver sustained therapeutic proteins over a long period (usually six months) and within a pre-determined, narrow therapeutic range may prove to have better efficacy and fewer side effects than traditional injections, due to the elimination of over- and under-shoot during repeated injections, thereby leading to improved chronic disease management. Using two outpatient procedures performed every six months or so, Biopump's cost advantage is also significant over repeated injections."

The global sales of the major products, which EPODURE and INFRADURE are designed to replace, were approximately $6.9B and $2.2B in 2011.
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