Street Watchdog Research starts Sophiris Bio Inc (NASDAQ:SPHS) with a Buy

PRICE TARGET - $7.50
Link to News Story
  
November 11, 2015
  
Yesterday Sophiris announced that, “PRX302 demonstrated a statistically significant improvement in International Prostate Symptom Score (IPSS) total score from baseline over 12 months compared to the vehicle-only control group (7.60 vs. 6.58 point overall improvement; p = 0.043), the primary endpoint of the study.  PRX302 continues to demonstrate a favorable safety profile, with no evidence of any treatment related sexual or cardiovascular side effects.”
 
Additionally, patients are “experiencing a significant relief of their BPH symptoms and improvement in their quality of life following a single treatment of PRX302.” If these results replicate themselves in a 2nd Phase III trial, it should be sufficient for registration with the FDA.  Treatment with PRX302 would represent a more attractive in-office procedure for urologists compared to more invasive procedures.
 
Our due diligence suggests that Sophiris has more than enough financial resources to fund operations with no additional share issuances through its next Phase III trial.
 
Given the substantial size of the benign prostatic hyperplasia (BPH or enlarged prostate) market, we estimate peak sales over $700 million.  We believe the company will achieve a favorable outcome in its 2nd Phase III trial, which we expect to have a reduced trial completion time.  As such, we are buyers of Sophiris.
 
Disclosure:  We are long SPHS.  We do not have a financial relationship with the company.