On Thursday, H.C. Wainwright adjusted its outlook on Kyverna Therapeutics Inc (NASDAQ:KYTX) shares, reducing the price target to $7.00 from the previous $8.00 but maintaining a Neutral stance on the stock.
The adjustment follows the company's announcement on Wednesday that the U.S. Food and Drug Administration (FDA) granted Regenerative Medicine Advanced Therapy (RMAT) Designation to its investigational treatment, KYV-101, for progressive myasthenia gravis (MG), a chronic autoimmune neuromuscular disorder.
This new RMAT status for KYV-101, an autologous CD19 CAR-T therapy, comes after a separate RMAT designation was received last month for the treatment of refractory stiff-person syndrome (SPS), a rare neurological disorder with features of an autoimmune disease.
Clinical data referenced by H.C. Wainwright includes findings from a case study published in The Lancet, which reported an approximate 11-point reduction in the Quantitative Myasthenia Gravis (QMG) score at a 60-day follow-up.
Additionally, research published in Cell highlighted a patient achieving around a 16-point improvement in QMG and a 12-point reduction in the Myasthenia Gravis Activities of Daily Living (MG-ADL) score at the 150-day mark. Another patient saw similar improvements at the 60-day follow-up.
Despite these positive clinical outcomes, the analyst expressed a need for longer-term data to fully assess the durability of KYV-101's therapeutic effects, stating an interest in seeing sustained results up to one year.
The revised price target reflects adjustments to the operating expenses and comes with a reiteration of the Neutral rating on Kyverna Therapeutics' shares, as the firm awaits further evidence of the treatment's long-term efficacy.
InvestingPro Insights
In light of H.C. Wainwright's recent adjustment to Kyverna Therapeutics' price target, pertinent real-time data from InvestingPro provides additional context for investors evaluating the company's financial health and market performance. Kyverna Therapeutics holds a market capitalization of approximately $291.03 million, which may be considered modest in the biotech industry. Notably, the company's Price to Book ratio stands at 0.81 as of the last twelve months leading up to Q1 2024, suggesting that the stock might be undervalued relative to its assets.
InvestingPro Tips indicate that Kyverna Therapeutics is quickly burning through cash, which aligns with the analyst's concerns about the company's operating expenses. This is further corroborated by the company's gross profit margin being in the negative, at -$63.69 million, for the same period. Moreover, the company's stock price has experienced a significant decline over the past year, with a 77.5% drop year-to-date, reflecting investor sentiment and market reactions to the company's performance and outlook.
While Kyverna Therapeutics has secured RMAT Designation for KYV-101, which is undoubtedly a positive development, these financial insights from InvestingPro suggest that potential investors should also consider the company's financial stability and market trends. For those seeking a more comprehensive analysis, InvestingPro offers additional tips on Kyverna Therapeutics at https://www.investing.com/pro/KYTX, which can further aid in making an informed investment decision.
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