Anika Begay
HC Wainwright maintained a Buy rating on Adverum Biotechnologies (NASDAQ:) on Tuesday, with a $30.00 price target. The company is looking forward to the nine-month analysis of the Phase 2 LUNA trial of Ixo-vec, a gene therapy candidate for wet age-related macular degeneration (AMD (NASDAQ:)). This upcoming analysis in Q4 2024 should provide further validation and consistent safety data for Ixo-vec.
The nine-month results are considered a critical step in de-risking the program ahead of the full 52-week primary endpoint analysis, expected in the first quarter of 2025. The company also expects an update on the pivotal Phase 3 study design later in the fourth quarter of 2024, following the selection of the 6E10 vg/eye dose for Phase 3 development.
Recent data from the 26-week interim analysis of the LUNA study showed promising results in reducing treatment burden. At the 26-week mark, a significant proportion of patients who previously required frequent anti-VEGF injections no longer did so after receiving Ixo-vec. The 6E10 dose resulted in a 90% reduction in mean annualized anti-VEGF injections, while the 2E11 dose achieved a 95% reduction.
These results not only suggest a potential best-in-class profile for Ixo-vec, but also indicate outcomes of maintained visual acuity and fluid control at both dose levels. With these positive interim results and the anticipation of upcoming data, HC Wainwright reiterates his Buy rating and $30 price target on Adverum Biotechnologies.
Another recent piece of news is that Adverum Biotechnologies has been granted Regenerative Medicine Advanced Therapy (RMAT) designation by the U.S. Food and Drug Administration for its gene therapy product candidate, Ixo-vec.
This therapy is currently being evaluated in the Phase 2 LUNA clinical trial and the Phase 1 OPTIC extension study for the treatment of wet age-related macular degeneration (wet AMD). In addition to RMAT, Ixo-vec has received Fast Track designation from the FDA and PRIME designation from the European Medicines Agency.
Adverum has also made changes to its management team, appointing Dr. Rabia Gurses Ozden as its new Chief Medical Officer and adding Dr. Szilárd Kiss to its Board of Directors.
On the other hand, analyst firm TD Cowen maintained a Buy rating on Adverum shares, following the presentation of 26-week data from its Phase II LUNA study. Meanwhile, Oppenheimer initiated coverage on Adverum with an Outperform rating, boosting the gene therapy’s commercial potential.
However, RBC Capital Markets lowered its price target on the company’s shares, maintaining a cautious stance due to Adverum’s past clinical challenges.
VscekPro Insights
As Adverum Biotechnologies (NASDAQ:ADVM) moves forward with its Phase 2 LUNA trial, real-time data from VscekPro highlights key financial metrics that investors may find pertinent. The company’s market cap stands at a modest $134.71 million, reflecting its status as a smaller player in the biotech industry. Despite a tough financial performance over the past twelve months, with reported gross profit of -$72.03 million and adjusted operating income of -$120.37 million, the company holds more cash than debt, which can be a positive sign of liquidity. This liquidity is further evidenced by the fact that liquid assets outweigh short-term obligations, according to a tip from VscekPro.
Investors should note that analysts do not expect the company to be profitable this year, as indicated by a negative P/E ratio of -0.69. However, another tip from VscekPro suggests that analysts are expecting sales growth in the current year, which could be a harbinger of potential upside if the company’s trials yield positive results. The stock has been trading near its 52-week low, which could attract value investors looking for an entry point, although caution is warranted given the stock’s significant decline in the past six months of -71.66%.
For those who want to dive deeper into the company’s prospects and financial health, VscekPro offers additional tips that can provide a more nuanced understanding of Adverum Biotechnologies. For more insights, including more tips from VscekPro, visit https://www.investing.com/pro/ADVM.
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