On Tuesday, Bio-Path Holdings (NASDAQ:BPTH) maintained its Buy rating and a $40.00 stock price target from Roth/MKM, following the company's announcement to expand the development plans for its drug, prexigebersen, to include obesity and obesity-related cancers. The drug is currently undergoing Phase 2 trials for Acute Myeloid Leukemia (AML).
In a business update, Bio-Path revealed its strategy to identify biomarkers for better targeting of patients likely to respond to prexigebersen. The company possesses full ownership of its DNAbilize technology patents, which includes five issued U.S. patents and 53 foreign patents across 21 countries.
The focus of the announcement was the company's intention to explore the potential of prexigebersen in treating obesity and related cancers. The drug operates by targeting the mRNA of Grb2, a protein that activates the RAS/ERK pathway associated with cell growth. This pathway is also linked to leptin and insulin, which are significant in obesity, suggesting that prexigebersen could be effective for this new indication.
Bio-Path is preparing to assess the drug's efficacy for obesity treatment, contingent on securing sufficient funding. The expansion into obesity and obesity-related cancers represents a significant step for the company, as these areas are of high interest in medical research and public health.
The company's proprietary intellectual property and the potential application of its drug to a broader range of diseases could position Bio-Path favorably in the biotechnology market. The reaffirmed price target reflects confidence in the company's strategic direction and the anticipated value of its expanded drug development plans.
InvestingPro Insights
As Bio-Path Holdings (NASDAQ:BPTH) ventures into the obesity and obesity-related cancer markets with its drug prexigebersen, investors may consider the company's financial health and market performance.
According to InvestingPro, Bio-Path holds more cash than debt on its balance sheet, which may provide some flexibility in its expansion plans. However, the company is not expected to be profitable this year, and it has not been profitable over the last twelve months. This aligns with the strategic need for securing funding for further drug efficacy assessments.
From a market performance perspective, Bio-Path has experienced a significant return over the last week, yet the stock has fared poorly over the last month and year, with a one-year price total return of -83.45%.
The company's current market capitalization stands at $3.44 million, and it is trading at a high Price / Book multiple of 7.79, which might indicate the stock is overvalued relative to its book value. These metrics suggest that while there may be short-term positive movements, long-term performance has been challenging.
For investors seeking a deeper analysis, InvestingPro offers additional insights, including a total of 11 InvestingPro Tips for Bio-Path Holdings. These tips provide a comprehensive view of the company's financial health and market performance, which could be crucial for making informed investment decisions. Interested readers can enhance their investment strategy by using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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