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Annovis Bio stock outlook supported by innovative neurodegenerative therapies

EditorAhmed Abdulazez Abdulkadir
Published 10/01/2024, 07:27 AM
ANVS
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On Tuesday, H.C. Wainwright reiterated its Buy rating and $30.00 price target for Annovis Bio Inc. (NYSE:ANVS), following the company's announcement on Monday of filing three new patents. These patents relate to innovative combination therapies using its lead compound, buntanetap, with other approved drugs. Annovis Bio is targeting the treatment of neurodegenerative diseases with these combinations.

The new patents cover the use of buntanetap with Trulicity (dulaglutide), Viagra (sildenafil), and a three-way combination involving both drugs. Dulaglutide is an existing treatment for type 2 diabetes, and sildenafil is widely known for treating erectile dysfunction. Buntanetap is designed to reduce neurotoxic proteins and has shown promise in improving cognition in patients with early Alzheimer's disease (AD) and in preventing cognitive decline in Parkinson's disease (PD).

Preclinical studies have indicated that the combination of buntanetap with either a GLP-1 agonist like Trulicity or PDE5 inhibitors such as Viagra can enhance cognitive function in Alzheimer's mouse models. These results suggest that the drug combinations could potentially exceed the cognitive function levels found in healthy controls.

The filings aim to strengthen Annovis Bio's intellectual property portfolio and offer a multifaceted approach to treating neurodegenerative conditions. The fact that both Trulicity and Viagra are already approved for use, and buntanetap has advanced to pivotal stages of development, sets the stage for these drug combinations to be evaluated in late-stage clinical trials.

Annovis Bio plans to leverage the established efficacy of Trulicity and Viagra, along with its proprietary compound buntanetap, to potentially improve cognitive functions in patients with neurodegenerative diseases. This strategic expansion of its pipeline underscores the company's commitment to addressing the complex treatment needs within this field.

In other recent news, Annovis Bio Inc. has made notable strides in its clinical trials and financial development. The company announced the filing of three patents for combination therapies involving its leading compound, buntanetap, targeted at neurodegenerative diseases such as Alzheimer's and Parkinson's.

The patents involve combinations of buntanetap with Trulicity or Viagra, which have shown promise in early clinical trials and are poised to advance to Phase 3 human trials.

Annovis Bio also revealed encouraging Phase 3 results for buntanetap in Parkinson's disease patients, leading to an increased price target from H.C. Wainwright. The company generated $7 million from the exercise of approximately 0.8 million warrants, marking a significant cash influx.

Analyst firms Canaccord Genuity and EF Hutton maintained a Buy rating on the company, with Canaccord Genuity setting a price target of $26.00 and EF Hutton a price target of $21.00. H.C. Wainwright also raised its price target to $30.00, maintaining a Buy rating.

InvestingPro Insights

Annovis Bio's recent patent filings for combination therapies align with its growth strategy, as reflected in InvestingPro data. The company's market capitalization stands at $105.22 million, indicating its current valuation in the biotech sector. An InvestingPro Tip suggests that net income is expected to grow this year, which could be linked to the potential of these new combination therapies.

The stock's volatility, as noted by another InvestingPro Tip, is evident in its price movements. While ANVS has seen a strong 52.94% return over the last three months, it's down 56.9% year-to-date, highlighting the speculative nature of biotech investments. This volatility may be influenced by investor reactions to clinical trial results and regulatory developments.

Analysts predict the company will be profitable this year, which could be driven by the advancement of buntanetap and these new combination therapies. However, it's important to note that ANVS is not currently profitable, with an adjusted operating income of -$40.88 million over the last twelve months.

For investors considering ANVS, InvestingPro offers 7 additional tips to provide a more comprehensive analysis of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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