H.C. Wainwright has increased the price target for Atossa Genetics (NASDAQ:ATOS) to $6.00 from the previous $4.00, while maintaining a Buy rating on the stock. The revision follows Atossa's announcement of its first-quarter 2024 financial results and updates on its corporate activities.
Atossa completed full enrollment for the I-SPY 2 study in February 2024. This study assesses the efficacy of Z-endoxifen, administered at a dosage of 10 mg daily for 24 weeks before surgery, in patients with newly diagnosed ER+ breast cancer who are likely responsive to endocrine therapy.
The aim is to reduce tumor size before surgery, which could lessen the need for mastectomy and potentially lower the cancer stage. The results of this study are expected in the second half of 2024.
The analyst pointed to the IMPACT study's findings, which showed that anastrozole combined with ovarian function suppression significantly reduced the Ki-67 biomarker, used to measure cell proliferation in breast cancer, more effectively than tamoxifen. These results set a high bar for Z-endoxifen's potential efficacy.
Additionally, Atossa recently revealed that a new arm of the I-SPY 2 study will commence, evaluating a combination of 40 mg daily of Z-endoxifen and 150 mg twice daily of abemaciclib, a CDK4/6 inhibitor. This study will involve 20 patients with neoadjuvant ER+/HER2- breast cancer over 24 weeks before surgery.
The decision to use a 40 mg dosage in the combination arm is believed to be influenced by data from the EVANGELINE study presented at the AACR, which showed significant Ki-67 reduction and responses among a small patient cohort.
The analyst concluded that the raised price target to $6.00 reflects an optimistic outlook on the company's lower operating expenses and the promising data supporting Z-endoxifen's potential in breast cancer treatment.
InvestingPro Insights
Following the recent update from H.C. Wainwright on Atossa Genetics (NASDAQ:ATOS), real-time data from InvestingPro reveals a mixed financial landscape for the company. With a market capitalization of $183.61 million and a negative price-to-earnings (P/E) ratio of -6.67 for the last twelve months as of Q4 2023, investors may exercise caution due to the company's current lack of profitability. Despite this, Atossa's stock has shown a strong return over the last six months, with a price total return of 127.77%, and a year-to-date (YTD) price total return of 65.91%.
InvestingPro Tips indicate that Atossa holds more cash than debt on its balance sheet, which could provide some financial stability. However, analysts have revised their earnings expectations downwards for the upcoming period, and the company is not expected to be profitable this year. For those interested in further analysis, there are additional InvestingPro Tips available which could provide deeper insights into Atossa's financial health and future prospects.
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