On Thursday, Acrivon Therapeutics Inc (NASDAQ:ACRV) maintained its Buy rating and $20.00 stock price target from H.C. Wainwright. The firm's optimism is rooted in the anticipated release of more mature Phase 2 data for ACR-368, a cancer treatment drug, expected in the first half of 2024.
The company had previously indicated activity in treating three types of cancer with ACR-368, both alone and in combination with low dose gemcitabine (LDG), in ongoing studies.
The Phase 2 study of ACR-368 targets ovarian cancer, urothelial carcinoma, and endometrial cancer. Notable activity has been observed across all three tumor types in the ACR-368 + LDG arm. Although quantitative data has not yet been presented, the company plans to reveal this more mature Phase 2 data at or around a medical conference, potentially the American Society of Clinical Oncology (ASCO) meeting in the first half of 2024.
The Phase 1b segment of the study, which included approximately 21 OncoSignature negative patients, has been completed. The next step involves advancing into the Phase 2 dose expansion portion with established recommended Phase 2 doses (RP2D) for LDG (10 mg/m2) and ACR-368 (105 mg/m2) for all three tumor types.
The progression into Phase 2 suggests a positive development, indicating the potential benefits seen across all three tumor types and affirming preclinical findings that LDG could enhance the response to ACR-368.
The synergy between ACR-368 and LDG could be attributed to the disruption of cell cycle progression by gemcitabine, while ACR-368 inhibits CHK1/2, proteins that prevent cell replication when DNA damage is present. Given that over 1,000 patients have been evaluated with the therapy by Eli Lilly (NYSE:LLY; not rated) before Acrivon acquired it, safety concerns regarding ACR-368 are minimal.
Despite Acrivon's stock declining by approximately 50% compared to the same period last year, as opposed to the approximately 10% increase in the NBI, H.C. Wainwright believes the low expectations for the upcoming data release in the first half of 2024 present a favorable benefit/risk setup for the stock.
InvestingPro Insights
As Acrivon Therapeutics Inc (NASDAQ:ACRV) moves forward with its clinical trials, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Acrivon has a market capitalization of $143.49 million, reflecting its current valuation in the market. Despite not having a P/E ratio due to lack of earnings, the company's price to book ratio stands at 1.12, suggesting that its stock is trading at a slight premium over its book value.
InvestingPro Tips indicate that Acrivon holds more cash than debt, providing some financial flexibility, and that its liquid assets exceed short-term obligations, which is a positive sign for its short-term financial health.
Still, the company is quickly burning through cash and is not expected to be profitable this year, which could be a concern for investors looking for near-term returns. It's also noteworthy that Acrivon has experienced a strong return over the last month, with a 44.63% increase, and over the last three months, with a 29.82% increase, despite a 51.75% decline over the past year.
For investors seeking a comprehensive analysis of Acrivon's financials and market prospects, there are over 10 additional InvestingPro Tips available at https://www.investing.com/pro/ACRV. These tips could provide deeper insights into the company's performance and potential investment opportunities. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where you can access these insightful tips and data metrics to inform your investment decisions.
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