Genta Incorporated (GNTA) is a biopharmaceutical company focused on developing and commercializing drugs for the treatment of cancer. The company's leading candidate, Genasense, got a 'non-approvable' notice from the FDA on December 15, 2006. The company filed an appeal with the FDA in April 2007 and got a positive response from the FDA in March 2008.
Additionally, positive results from the AGENDA trial will support the worldwide filing of Genasense as a treatment for melanoma. However, results from the phase III trial are not expected before mid-2009. Therefore, we rate the shares Hold with a target price of $0.70 on a market cap of $26 million.
In April 2008, the company reduced its workforce by approximately 30% in order to conserve cash. Genta also announced that it would seek a buyer for its sole marketed product, Ganite. We do not see the company attaining profitability in the near future. We believe that Genta shares are fairly valued at the current level.
Maharathi Basu contributed to this report.
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