Benchmark has maintained its Speculative Buy rating and $3.00 price target on Hoth Therapeutics (NASDAQ:HOTH) (NASDAQ: HOTH).
The decision comes as the company progresses with its Phase 2a study of HT-001, a lead drug candidate for treating skin conditions caused by cancer therapy. Hoth Therapeutics ended the second quarter with $9.7 million in cash and equivalents, which is estimated to sustain the company for approximately one year.
The ongoing study, known as the CLEER-001, is evaluating HT-001's efficacy in treating rashes and skin disorders associated with the use of epidermal growth factor receptor (EGFR) inhibitor therapy in cancer patients.
The company has recently expanded the study by adding two new sites in September, the Montefiore Medical Center and the Dana-Farber Cancer Institute, increasing the total to nine locations.
Benchmark's optimism about Hoth Therapeutics is fueled by the company's diverse pipeline of projects, which show potential for partnerships in the near term. The analyst firm has not altered its rating or price target following the review of the company's financial model and the clinical study advancements.
Hoth Therapeutics' strategic efforts to advance its pipeline, including the current clinical trial for its lead drug candidate, underscore the company's commitment to addressing the unmet medical needs of cancer patients experiencing adverse skin reactions due to their treatment. With a solid cash position and the expansion of the CLEER-001 study, Hoth Therapeutics is poised to continue its clinical and operational progress.
In other recent news, Hoth Therapeutics reported positive results from a patient treatment using their novel therapeutic HT-001, designed to alleviate skin toxicities in cancer patients. The biopharmaceutical company also announced a partnership with Aronnax, Inc., advancing their HT-KIT cancer therapeutic study, aiming to establish a dose range for future clinical trials. EF Hutton upgraded Hoth Therapeutics based on the potential of HT-001 Topical Gel, currently in a Phase 2a clinical study, projecting its commercialization by 2029.
In a partnership with LTS Therapy Systems, Hoth Therapeutics has been making progress in Alzheimer's treatment, developing an oral film treatment, HT-ALZ, which has shown potential cognitive benefits in preclinical results. Furthermore, the company expanded its Phase 2a clinical trial for HT-001 to include three new sites.
InvestingPro Insights
While Benchmark maintains a positive outlook on Hoth Therapeutics (NASDAQ:HOTH), recent InvestingPro data provides additional context to the company's financial situation. As of the last twelve months ending Q2 2024, HOTH reported an adjusted operating income of -$7.49 million, reflecting the company's current pre-profit stage as it invests in its drug development pipeline.
InvestingPro Tips highlight that HOTH holds more cash than debt on its balance sheet, which aligns with the article's mention of the company's $9.7 million cash position. This financial cushion is crucial for sustaining operations and advancing clinical trials. However, investors should note that the stock has taken a significant hit recently, with a 1-month price total return of -37.62% as of the latest data.
For those seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for HOTH, providing deeper insights into the company's financial health and market performance. These additional tips can be particularly valuable for investors looking to understand the full picture beyond the ongoing clinical trials and cash position discussed in the article.
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