Maxim Weighs In on Keryx Biopharmaceuticals (KERX) and Kite Pharma Inc (KITE)

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Maxim’s healthcare analysts are weighing in on the ​Boston drug company Keryx Biopharmaceuticals (NASDAQ:KERX) and cancer drug discovery company Kite Pharma Inc (NASDAQ:KITE), following recent announcements.

Keryx Biopharmaceuticals

In a research report published Friday, Maxim analyst Jason Kolbert reiterated a Buy rating on shares of Keryx Biopharma, with a price target of $11, after the company announced that it has entered into an agreement to raise $125 million through the private placement of Convertible Senior Notes due 2020 ($3.74) with the Baupost Group, L.L.C.

Kolbert noted, “The company now has $225M in cash (9.30.2015) and guided to an $87-$92M burn excluding COGS. As outlined in the press release Baupost will have the right to appoint a director to Keryx’s Board by the end of 2015. Baupost will also appoint an observer to Keryx’s board.”

“Have Sales Improved yet? We have yet to see a break out but we remain hopeful that we will eventually get there. Recall that Keryx reported anemic sales of Auryxia of just $1.7M last quarter. How is that possible in a...