NEW YORK, Dec. 3, 1998 (PRIMEZONE) -- Barrow Street Research, Inc., an independent research firm headquartered in New York, today issued a Buy Recommendation on Genetronics Biomedical, Ltd., and initiated coverage on the Company.
Genetronics Biomedical, Ltd. (Toronto Stock Exchange: GEB), headquartered in San Diego, is a leader in the use of electroporation to effectively deliver beneficial drugs or genes to combat serious human illnesses.
In the 12-page report, Barrow Street said that "with the combination of product introductions, a growing revenue base and expected increases in investor awareness, we believe that the market value of Genetronics could increase significantly over the next 12 to 24 months and we rate the stock a Buy."
"Over the last several years, Genetronics has established the infrastructure necessary to help it successfully launch several new products based on its core electroporation drug and gene delivery technology," said Peter Mintz, Barrow Street analyst and author of the report.
"The company has been conducting clinical trials in a variety of areas and has had particularly promising results in treating several types of cancer," the report said. "Genetronics is now completing cancer-related clinical trials and has established a development, marketing and financial relations with Johnson & Johnson, which should help it bring products to market during the next twelve months."
"The company has already received $10 million in equity and licensing payments from J&J and can expect significant additional revenue by reaching certain milestones as well as a percent of net sales," Mintz concluded.
Barrow Street recommended the stock for portfolios with the objective of long-term growth and said the risk level is high. It said it could support a price target range of $9 to $13 (U.S.) over the next 12 to 18 months.
Copies of the report are available from Barrow Street at 212/741-3207 or on the Barrow Street Web site at www.barrowstreet.com.
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This press release may contain forward-looking statements. Actual events or results may differ from the Company's expectations. There can be no assurance that any product in Genetronics product pipeline will be successfully developed or manufactured, or that final results of human pilot studies or clinical studies will be supportive of regulatory approvals required to market products. The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.