On Wednesday, Canaccord Genuity sustained its Buy rating and $25.00 price target for Quanterix Corp (NASDAQ:QTRX), following significant developments in the Alzheimer's disease (AD) treatment landscape. The endorsement comes after the Peripheral and Central Nervous System Drugs Advisory Committee's positive evaluation of Eli Lilly (NYSE:LLY)'s donanemab drug on Monday, June 10, 2024.
The committee unanimously concluded that the benefits of donanemab, which is designed to slow the progression of Alzheimer's disease, outweigh its risks. This decision is often seen as a strong indicator of potential FDA approval. Canaccord Genuity believes that the advisory committee's vote signals a possible expansion in the number of treatment options for Alzheimer's disease, which is currently the seventh leading cause of death in the United States.
Despite the limited FDA-approved options that can alter the disease's progression, the analyst highlighted the importance of timely and accurate diagnostics in managing Alzheimer's disease. With the anticipation of more effective treatments becoming available, the demand for diagnostics is expected to grow, benefiting companies like Quanterix that are engaged in developing related diagnostic tools.
The firm pointed out that while smaller competitors in the AD diagnostics market, such as Quanterix, may need to harness intellectual property to stay competitive, the overall market for AD diagnostics is likely to broaden. This expansion is projected to support multiple companies operating within the space.
In other recent news, Quanterix Corporation reported a 13% increase in total revenue to $32.1 million for the first quarter of 2024. The growth was primarily fueled by a 57% increase in Accelerator Lab revenue and a 22% increase in consumables business, despite a significant decrease in instrument revenue by 52%. Quanterix maintained its full-year 2024 revenue guidance of $139 million to $144 million and ended the quarter with a cash balance of $304.5 million.
Scotiabank reiterated its Sector Outperform rating on Quanterix stock following the FDA's Peripheral and Central Nervous System Drugs Advisory Committee (PCNS) approval of Eli Lilly's Alzheimer's drug, donanemab. The bank anticipates further progress in Quanterix's neuro-Dx menu development, commercial execution, and regulatory milestones in the next 6 to 12 months.
Quanterix also plans to launch approximately 20 new biomarker assays in neurology, immunology, and oncology. The company's p-Tau 217 blood test for Alzheimer's disease has received FDA breakthrough designation.
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