IsoRay (ISR) PT Lowered to $3 at Maxim Group

Maxim Group analyst Jason Kolbert reiterated a Buy rating while lowering his price target on IsoRay, Inc. (NYSE: ISR) to $3.00 (from $5.00) following Q3 results, noting sales traction is taking time.

Kolbert highlighted:

• Isoray announced its financial results for the quarter ending September 2015. Revenues grew sequentially from $1.1M, to $1.3M. We estimate just under $15M in cash and no debt.
• Recent published studies (three) showed outstanding results were achieved with cesium-131 (Cs-131) for metastatic brain cancer, prostate cancer, and, most recently, lung cancer. To date, all of the published studies have reported impressive results, in our view, when Cs-131 was used to treat aggressive cancers.
• As we wrote last quarter (and it is still the case), the number of physician and medical center inquires for Cs-131 continues to rise, foreshadowing interest and slow, but rising, sales.
• Physician adoption is key to Cs-131 and Isoray's success. Isoray, through multiple publications and abstract presentations at major conferences, is driving awareness to plant the seeds (no pun intended) for Cs-131 adoption (click for a recent publication).
• Recent medical centers adopting Cs-131 include Cornell, the Barrow Neurological Institute in Arizona, the Chicago Prostate Center, Thomas Jefferson University, and the University of Pittsburgh Medical Center (UPMC), as well as centers in Europe and South America.
• Conclusion: No change from our prior comments. We believe Cs-131 is a more efficacious, safer alternative to SOC isotopes iodine-125 or palladium-103. Cs-131 hits the tumor faster and harder (shorter half life), which should convince physicians to adopt over time. As Cs-131 is now in centers in the east, west, and central parts of the US, we believe adoption will continue. More data and more publications are coming, which should help the push.

For an analyst ratings summary and ratings history on IsoRay, Inc. click here. For more ratings news on IsoRay, Inc. click here.

Shares of IsoRay, Inc. closed at $1.44 yesterday.

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