Wednesday, December 23, 2009

ATHX! What a rush!

ATHX. This stock has had an incredible run in the past few days, but yet I still think it has a ways to go. The major news is:
* Pfizer to develop and market Athersys' MultiStem
* Athersys to get up-front payment of $6 mln
* Athersys to receive milestone payments of up to $105 mln, along with tiered royalty payments on worldwide sales.


On this deal along ATHX will get an up-front payment of 6 million dollars. Last year, the company's total revenue of 3.1 million dollars. This 6 million upfront payment along with increase revenue 200%. This is HUGE! With milestone payments of $105 million dollars, this company should begin posting some healthy profits especially since it appears the R&D work has already been done.

Tuesday, an analyst came out with a price target of $8 / share. I believe this is quite possible just due to the amount of cash that will be infused in this company. Add to that the tiered royalty payments by a company who is a leading pharmacial sales company. ATHX $1/share days for over for a long time to come.

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