Tekmira (TKMR) has gained 27% this week alone, and no wonder. Its Ebola treatment is thought to be on the fast-track to approval thanks to the massive outbreak in Africa that has now reached US shores.
Getty Images There’s more to Tekmira than Ebola, notes Maxim’s Jason Kolbert, even if it’s the company’s treatment that caused him to raise his target on the stock to $31 from $23:
Tekmira announced the achievement of a development milestone, supporting a $1.5 million payment from Monsanto (MON), following completion of specified program objectives. This work is part of the research program under the Option Agreement Tekmira signed with the agriculture company, which was announced on January 13, 2014. The Option Agreement relates to Tekmira’s proprietary delivery technology and intellectual property for use in agricultural applications. The potential value of the transaction could reach up to $86.2 million, following the successful completion of all program milestones.
This news follows the recent news of a reported case of Ebola in Texas. Tekmira continues to make progress in the development of TKM-EBOLA. On September 22, 2014 the company announced that TKM-EBOLA was cleared for emergency use on the ground in West Africa. The company announced it will join an international consortium that will establish clinical development centers in Ebola hot zones. We have accelerated our Ebola assumptions and as a result it drives additional upside, our new price target is $31.00.
Shares of Tekmira have gained 8.3% to $27.58 at 12:02 p.m., while Monsanto has dipped 0.1% to $110.09.
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