On Tuesday, TD Cowen maintained a Buy rating on shares of Adverum Biotechnologies (NASDAQ:ADVM), a clinical-stage gene therapy company. The firm's position comes after Adverum reported a second-quarter net loss of $18.5 million and had cash reserves of $173.8 million as of June 30.
The company is currently progressing through its Phase II LUNA study, which is evaluating the durability of its gene therapy treatment. Adverum anticipates revealing nine-month durability data from this study in the fourth quarter, with further one-year results expected in the first quarter of 2025. Additionally, there are plans to potentially commence a pivotal program in the first half of 2025.
TD Cowen's stance is influenced by the belief that Adverum's shares are significantly undervalued compared to similar programs in the industry. The analyst highlighted the upcoming milestones as key factors in maintaining the positive outlook on the company's stock.
Adverum's focus is on developing gene therapy solutions for ocular and rare diseases. The anticipated data from the ongoing studies are critical for the company's advancement towards potentially providing new treatment options for patients. The firm's continued confidence in Adverum is based on the expected progress and milestones of its clinical programs.
In other recent news, Adverum Biotechnologies reported second-quarter financial results for 2024, surpassing both the firm's and consensus earnings estimates. The biotech firm's earnings per share of ($0.89) beat the estimated ($1.25) and the Street's forecast of ($1.47). The company's gene therapy product, Ixo-vec, has shown promising results, with a significant 76% of patients in the 6E10 cohort not requiring further injections.
These findings were presented at the American Society of Retina Specialists meeting, highlighting Ixo-vec's potential as a best-in-class product with a favorable safety profile. The biotech industry is anticipating the upcoming LUNA 9-month landmark analysis and an update on the pivotal trial design, both expected in the fourth quarter of 2024.
In other developments, Ixo-vec has been awarded the Regenerative Medicine Advanced Therapy (RMAT) designation by the U.S. Food and Drug Administration. The company has also seen leadership changes with the appointment of Dr. Rabia Gurses Ozden as the new Chief Medical Officer and the addition of Dr. Szilárd Kiss to its Board of Directors.
Analyst firms H.C. Wainwright and TD Cowen have reaffirmed their Buy ratings on Adverum, while Oppenheimer maintained its Outperform rating. However, RBC Capital Markets has lowered the company's share price target, maintaining a cautious stance due to past clinical challenges. These are the recent developments in Adverum Biotechnologies.
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