Acrivon Therapeutics Inc (NASDAQ: ACRV) has received an upgrade from Neutral to Buy by Ladenburg Thalmann, with a new price target set at $16.
The upgrade follows Acrivon's announcement of a 63% objective response rate (ORR) in a small study involving endometrial cancer patients who had not responded to or were ineligible for prior PD-1 therapy.
The preliminary results have shifted the company's focus towards endometrial cancer for the potential first approved indication of their drug, prexasertib.
The decision comes despite the absence of updates on ovarian cancer, which was previously considered the lead indication for Acrivon's valuation.
The firm noted the impressive response rate, particularly as most patients in the study had previously undergone multiple lines of therapy, including treatment with pembrolizumab.
The duration of response (DoR) for prexasertib is approaching six months, which is significant as it meets the FDA's general minimum requirement for single-agent approvals.
With the increasing use of PD-1/PD-L1 therapies like pembrolizumab as first-line options for various cancers, patients who progress after PD-1 therapy have limited alternative treatments.
The company also reported a statistically significant difference in responses between patients positive for OncoSignature (BM+) and those who are OncoSignature-negative (BM-).
However, it remains uncertain if the FDA will accept BM+ as a valid companion diagnostic (CDx) for a single-agent registrational trial in BM+ endometrial patients.
The analyst acknowledged the achievement of Acrivon in demonstrating a high response rate in the small study of PD-1-failed endometrial cancer patients, which led to the upgrade in the stock rating and the establishment of a new price target.
In other recent news, Acrivon Therapeutics has been the focus of several key developments. The biopharmaceutical company has reported promising preliminary data from its Phase 2 trial for cancer treatment ACR-368, which targets ovarian and endometrial cancers.
This progress has led BMO Capital Markets to maintain an Outperform rating on Acrivon's shares, citing the potential of the company's AP3 OncoSignature platform.
In addition, Acrivon is planning to begin a Phase 1 trial for another treatment, ACR-2316, in the fourth quarter of this year, as part of its strategic efforts to expand its portfolio of cancer treatments.
The company's annual meeting resulted in the election of three Class II directors and the ratification of PricewaterhouseCoopers LLP as their independent auditor for the fiscal year ending December 31, 2024.
Despite current revenue projections standing at $0 for 2024, analysts from BMO Capital Markets, H.C. Wainwright, and Oppenheimer project potential revenue of $7 million by 2025.
InvestingPro Insights
Following the recent upgrade by Ladenburg Thalmann, Acrivon Therapeutics Inc (NASDAQ: ACRV) has shown a strong return over the last week with a 12.78% price total return. This uptick is part of a larger trend, with the company experiencing a 43.94% price total return over the last six months. The market has responded positively to the company's announcement regarding the 63% objective response rate in their recent study, which is reflected in the stock's performance. Despite the promising clinical results, Acrivon holds a market capitalization of $275.96 million and has a negative P/E ratio, indicating that the company is not currently profitable.
InvestingPro Tips highlight that while Acrivon has more cash than debt on its balance sheet, analysts are concerned about the company's cash burn rate and weak gross profit margins. Moreover, they note that Acrivon is not expected to be profitable this year and has not been profitable over the last twelve months. These financial health indicators are crucial for investors to consider when evaluating the company's long-term viability, despite the short-term positive clinical news. For a deeper dive into Acrivon's financials and additional InvestingPro Tips, which currently number 12 in total, visit https://www.investing.com/pro/ACRV.
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