H.C. Wainwright has maintained a Buy rating and a $9.00 price target on shares of Alpha Tau Medical Ltd. (NASDAQ: DRTS).
The endorsement follows the recent initiation of a clinical trial by Alpha Tau Medical, where the first patient with recurrent lung cancer was treated using Alpha DaRT in Jerusalem, Israel.
The study is designed to test the safety and practicality of delivering Alpha DaRT sources into the lung through an endobronchial ultrasound (EBUS) procedure.
The protocol outlines plans to include up to 10 patients with recurrent tumors in the mediastinum, which is the central compartment of the chest. These participants may also receive concurrent chemotherapy, targeted therapy, or immunotherapy alongside the Alpha DaRT treatment.
The effectiveness of the Alpha DaRT therapy will be measured by observing the tumor response one and three months after the insertion of the source, based on RECIST criteria. This approach is intended to provide a standardized way to assess the response of solid tumors to treatment.
In other recent news, Alpha Tau Medical Ltd. has been the subject of several updates. The company recently reported a second-quarter net loss of $7.4 million, which was less than the anticipated $8.1 million loss.
Alpha Tau Medical also disclosed its second-quarter operating loss of $9.1 million, slightly higher than analysts' expected $8.9 million. Piper Sandler, an analyst firm, maintained an Overweight rating on the company, citing efficient financial management and progression of clinical trials.
In terms of clinical trials, Alpha Tau Medical's ReSTART U.S. pivotal trial for recurrent cutaneous squamous cell carcinoma is expected to complete patient enrollment by the end of 2024. The company's Canadian trial for advanced inoperable pancreatic cancer is also on track to deliver data by the end of the first quarter of 2025. Alpha Tau Medical is awaiting potential pre-market approval from the PMDA in Japan for Alpha DaRT in patients with recurrent head and neck cancer.
H.C. Wainwright has maintained its Buy rating on Alpha Tau Medical's stock, reflecting confidence in the company's ongoing and future initiatives in its clinical trial programs.
InvestingPro Insights
As Alpha Tau Medical Ltd. (NASDAQ: DRTS) advances its clinical trials for the Alpha DaRT therapy, investors may find additional context from recent financial data and analyst insights. According to InvestingPro, the company's market capitalization stands at $157.33 million, reflecting its current position in the biotech sector.
InvestingPro Tips highlight that Alpha Tau Medical holds more cash than debt on its balance sheet, which could provide financial flexibility as it progresses through costly clinical trials. This is particularly relevant given the company's ongoing research into recurrent lung cancer treatment. Additionally, two analysts have revised their earnings upwards for the upcoming period, potentially indicating growing confidence in the company's prospects.
However, it's important to note that Alpha Tau Medical is currently not profitable, with a negative P/E ratio of -5.67. This is not uncommon for biotech companies in the development stage, as they often prioritize research and clinical trials over immediate profitability. The company's EBITDA for the last twelve months as of Q2 2024 was -$35.22 million, underscoring the significant investments being made in its therapeutic pipeline.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide deeper insights into Alpha Tau Medical's financial health and market position. These additional tips, along with real-time metrics, can help investors make more informed decisions as they follow the company's progress in its innovative cancer treatment research.
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