On Wednesday, H.C. Wainwright initiated coverage on NASDAQ-listed TuHURA Biosciences (NASDAQ: HURA), assigning a Buy rating and a price target of $11.00. Currently trading at $4.02, the stock appears undervalued according to InvestingPro analysis, with analysts setting an even more ambitious target of $15.00.
The firm's coverage begins as TuHURA Biosciences advances its efforts in cancer treatment technology, focusing on overcoming resistance to checkpoint inhibitors, a common issue in cancer therapy.
The company's proprietary technology platform, Immune FxTM (IFx-HU2.0), is at the center of its strategy. With a market capitalization of $168.75 million and a strong current ratio of 4.92, TuHURA maintains solid financial flexibility.
Developed in the laboratory of Dr. Michael Lawman, formerly a Director at the Walt Disney (NYSE:DIS) Memorial Cancer Institute, and Dr. Patricia Lawman, previously Division Director of Cancer Molecular Biology at the Institute, IFx-HU2.0 is designed to transform cancer cells to mimic bacterial structures and trigger an immune response.
TuHURA Biosciences' approach involves an intralesional adjunctive vaccine consisting of plasmid DNA encoding Emm55, a protein derived from Streptococcus pyogenes. This protein, once introduced into tumor cells, prompts them to express Emm55, leading to a personalized immune reaction by utilizing the tumor's unique neoantigens. The goal is to enhance the efficacy of checkpoint inhibitor-based therapies.
The company's strategy aims to address the limitations of current cancer treatments by avoiding the toxicity and infections associated with using attenuated bacteria. Intralesional therapies like this are seen as a promising option for boosting anti-tumor immune responses while minimizing side effects and reducing overall toxicity.
In addition to IFx-HU2.0, TuHURA Biosciences is developing the IFx-3.0 platform, which aims to extend the applicability of its Immune FxTM technology to a broader range of tumor types. While the company reported negative EBITDA of $14.48 million in the last twelve months, InvestingPro data shows a FAIR financial health score, suggesting stable development potential.
Subscribers can access 8 additional ProTips and comprehensive financial analysis to better understand the company's growth trajectory. This includes an mRNA-based cancer vaccine for blood-related cancers, which is engineered for delivery by a lipid nanoparticle targeting the spleen or bone marrow, and is coupled with an antibody targeting CD22, a receptor overexpressed in B-cell cancers such as lymphoma.
In other recent news, TuHURA Biosciences is set to acquire Kineta, aiming to advance the development of innovative cancer treatments. The acquisition will be facilitated through a combination of cash and TuHURA common stock with additional potential payments from Kineta's pre-closing product sales. TuHURA is also preparing for a Phase 3 trial of its immune agonist candidate, IFx-2.0, for advanced Merkel Cell Carcinoma.
In parallel, TuHURA is advancing its discussions for the acquisition of KVA12123, an antibody drug from Kineta. The drug has shown promise in monotherapy trials and is nearing completion in combination trials with Merck (NS:PROR)'s anti-PD1 therapy.
Kintara Therapeutics and TuHURA Biosciences are progressing towards a merger, with Kintara shareholders approving the issuance of common stock related to the agreement. Kintara plans to conduct a 1-for-35 reverse stock split before the merger. TuHURA has also strengthened its leadership team with new appointments and completed a $31 million financing round.
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