On Monday, Raymond (NS:RYMD) James made adjustments to its financial outlook for Inozyme Pharma Inc. (NASDAQ: INZY), reducing the price target to $24 from $26 while maintaining an Outperform rating on the stock.
Currently trading at $2.00, the company appears undervalued according to InvestingPro analysis, with analyst targets ranging from $12 to $43. The decision follows the review of interim data from the ENERGY 1 study and expanded access program for infants with ENPP1 deficiency, also known as Generalized Arterial Calcification of Infancy (GACI).
Ryan Deschner of Raymond James highlighted that the treatment with INZ-701 appears to be contributing to improvements in both functional aspects and disease progression in patients. The analyst expressed optimism that the survival co-primary endpoint could be met in the upcoming pivotal ENERGY 2 study, anticipated in 2025.
Despite the positive outlook, concerns were raised regarding the presence of anti-drug antibodies (ADAs), which were observed at higher levels in the infant study compared to adult studies.
InvestingPro data shows the company maintains strong liquidity with a current ratio of 7.68, though it's currently burning through cash reserves. Subscribers can access 12 additional key insights about INZY's financial health.
Although these ADAs did not completely counteract the efficacy of INZ-701, they introduced some uncertainty. The potential impact of ADAs on PPi levels, especially in pediatric patients, is expected to be a central point of interest leading up to the early 2026 readout of the ENERGY 3 study.
The ENERGY 3 study, which will have a primary focus on pyrophosphate (PPi) levels—a co-primary endpoint in the European Union—will be particularly scrutinized for the influence of ADAs. The possibility of mitigating ADA effects through increased dosing or the use of immune-modifying therapies is being considered.
The reduction in Inozyme Pharma's price target reflects the added uncertainty from elevated ADA levels and their potential impact on the outcomes of pediatric studies. Despite this adjustment, Raymond James remains confident in the stock's performance, underpinned by the promising treatment developments for patients suffering from ENPP1 deficiency. The stock has experienced significant pressure, down 31% in the past week and 61% over six months, though three analysts have recently revised their earnings estimates upward for the upcoming period.
In other recent news, Inozyme Pharma Inc. has made significant strides in its clinical trials and received positive feedback from several analysts. The biotech company has reported promising interim results from its ENERGY 1 trial and Expanded Access Program, which evaluates the investigational drug INZ-701. The treatment led to an 80% survival rate beyond the first year for infants involved in the study, a substantial increase compared to the historical 50% survival rate.
The company has also completed enrollment for its ENERGY 3 pivotal trial and received regulatory guidance from the FDA and EMA for its planned ASPIRE pivotal trial. These recent developments are part of Inozyme's ongoing efforts to address rare diseases affecting bone health and blood vessel function.
In addition, Inozyme has been the subject of several analyst upgrades. Jefferies initiated a Buy rating on the company, highlighting the potential of its lead drug candidate, INZ-701. Piper Sandler increased its target for Inozyme to $43, maintaining an Overweight rating on the company's shares. H.C. Wainwright reiterated a Buy rating and a $14.00 price target for Inozyme's shares. These ratings reflect the analysts' confidence in the company's potential and its ongoing clinical trials.
Inozyme also announced that Erik Harris has been appointed to its Board of Directors and revealed approximately $23.8 million remaining in its at-the-market equity offering program, facilitated by Jefferies LLC. The company's third-quarter update revealed plans to release interim data from the ENERGY Phase 1b trial in the fourth quarter of 2024, with top-line results from the ENERGY 3 trial expected in early 2026.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.