On Monday, H.C. Wainwright maintained a Buy rating on Entera Bio (NASDAQ:ENTX), with a price target of $10.00. The firm's stance comes after the recent American Society for Bone and Mineral Research (ASBMR) annual meeting, which concluded in Toronto late last month.
At the meeting, the SABRE (Study to Advance BMD as a Regulatory Endpoint) presented an update. This update included a general overview of the SABRE ASBMR/FNIH process and discussed the unmet needs and treatment gaps in osteoporosis. It highlighted the ethical and other limitations of fracture studies that have impeded innovation and introduced the total hip bone mineral density (BMD) assessment. The assessment demonstrated statistical superiority over lumbar spine BMD measurements.
The presentation at the ASBMR meeting also provided details on the proposed treatment targets, known as "surrogate threshold effects (STE)," which were submitted to the FDA in the SABRE final qualification package. These targets are statistically correlated with reductions in vertebral and all fracture risks.
The correlations are based on a meta-analysis of over 50 clinical studies from seven drug classes, including placebo-controlled fracture outcomes from 170,000 patients. These studies involve data from pharmaceutical companies such as Amgen (NASDAQ:AMGN), Eli Lilly (NYSE:LLY) & Co., Merck & Co., Novartis (SIX:NOVN), and Pfizer (NYSE:PFE).
The reiteration of the Buy rating and the 12-month price target of $10 by H.C. Wainwright reflects the firm's view on Entera Bio's potential in the market following the recent developments in osteoporosis treatment research and regulatory processes.
In other recent news, Entera Bio and OPKO Health have reported promising preliminary results from their joint research into an oral treatment for obesity and related metabolic disorders. The research focuses on a long-acting oxyntomodulin (OXM) analog combined with Entera's N-Tab technology. In vivo studies using rodent and pig models indicated significant systemic exposure and a favorable pharmacokinetic profile for the oral OXM after a single dose.
H.C. Wainwright has maintained a Buy rating on shares of Entera Bio, following these positive results, with a price target of $10.00. The firm's stance is based upon the successful completion of proof-of-concept pharmacokinetic and pharmacodynamic studies and the continued development of this oral therapy.
In other developments, Entera Bio's shareholders have approved key proposals including the election of Miranda Toledano and Yonatan Malca to the company's Board of Directors for a three-year term. They also approved a one-time compensation grant for CEO Miranda Toledano, revised compensation terms for non-executive directors, and an amendment to the company's 2018 Equity Incentive Plan, which includes an increase in the number of shares issuable by 1,788,515 shares.
InvestingPro Insights
Entera Bio's (NASDAQ:ENTX) recent developments in osteoporosis treatment research align with some interesting financial metrics and insights from InvestingPro. The company's market capitalization stands at $67.93 million, reflecting its position as a niche player in the biotechnology industry. This aligns with an InvestingPro Tip that highlights ENTX as a "niche player in the industry."
Despite the promising research developments, it's important to note that ENTX is not currently profitable, as indicated by another InvestingPro Tip. This is further reflected in the company's operating income margin of -15,045.61% for the last twelve months as of Q2 2024. However, the company's potential is recognized by analysts, with a fair value estimate of $10 per share, which interestingly matches H.C. Wainwright's price target mentioned in the article.
Investors should also be aware that ENTX has shown a high return over the last year, with a one-year price total return of 161.5%. This performance, coupled with the company's research progress, may explain the maintained Buy rating from H.C. Wainwright.
For those interested in a deeper analysis, InvestingPro offers 5 additional tips for ENTX, providing a more comprehensive view of the company's financial health and market position.
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