Osteologix has completed its enrollment in the “Strong Study”, completed its phase II clinical trial, introduced a new and improved dosage form of Strontium, and treated osteoporosis in several European countries.
The results from phase II should be received in the next seven month. If the results meet the target endpoint, the stock is expected to see substantial appreciation. The analyst stated, “At current price levels, OLGX deserves a Buy rating.”
The analyst concluded, “We initiated coverage of Osteologix in January with a Speculative Buy rating and a 12 month price target of $3.88. Our target price is based on the present value of the estimated future share price of $7.56 and a 10 percent discount factor. If revenues reached $42 million in 2014 and 50 million shares were outstanding, Osteologix would generate revenues per share of $0.84 in 2014. At the biotech industry’s current 9 times P/S multiple, this implies a future price of $7.56 for OLGX shares. We believe that at current price levels, this stock has a relatively low level of risk with enormous upside potential.”
Let us hear your thoughts below:
