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Jasper Therapeutics shares gain on positive study results

EditorLina Guerrero
Published 10/14/2024, 02:42 PM
JSPR
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On Monday, Jasper Therapeutics (NASDAQ:JSPR) received a reaffirmed Buy rating from TD Cowen, following promising initial data from a clinical trial. The study in question, Ph1b/2a SPOTLIGHT, evaluated the effects of briquilimab in Chronic Inducible Urticaria (CIndU), a skin condition characterized by hives and swelling.

The SPOTLIGHT study reported rapid responses within one week, with a 92% best response rate at the six-week mark. Additionally, a 58% Objective Response Rate (ORR) was observed at the same six-week timepoint with a single 120mg dose of briquilimab. Importantly, the treatment demonstrated a clean safety profile, without Grade 3 adverse events (AEs), hypersensitivity reactions, or hair lightening. These findings suggest a tolerable and potentially effective treatment for patients with CIndU.

Management at Jasper Therapeutics is now considering a higher 180mg dose of briquilimab, as the 120mg dose is believed to be an underdose based on tryptase levels. Tryptase is an enzyme released during an allergic response and is used as a biomarker to assess the severity of allergic diseases.

Further data on briquilimab's efficacy in treating CIndU is expected to be released in the first half of 2025. Additionally, initial data from the BEACON study, which is investigating briquilimab for Chronic Spontaneous Urticaria (CSU), another form of hives, is anticipated in January 2025. This upcoming data will provide more insights into the drug's potential and its broader implications for treating urticaria subtypes.

In other recent news, Jasper Therapeutics has reported promising preliminary results from its SPOTLIGHT Phase 1b/2a clinical trial, investigating the use of briquilimab for chronic inducible urticaria. Initial data reveals a positive clinical response in a majority of the participants. In addition, the company has received clearance from Health Canada to commence a Phase 1b/2a clinical trial for briquilimab as a potential treatment for asthma.

Several analyst firms, including Oppenheimer, JMP Securities, H.C. Wainwright, and RBC Capital, have maintained positive ratings on the company's shares, highlighting the potential of briquilimab. Jasper Therapeutics also announced that its SPOTLIGHT study in Chronic Inducible Urticaria and a trial for asthma are scheduled for the fourth quarter of 2024.

Furthermore, the U.S. Patent and Trademark Office has registered a trademark for Jasper's proprietary Jasper c-Kit Mouse™ model, which has been instrumental in the clinical development of briquilimab. These recent developments indicate the progress of Jasper Therapeutics in its clinical trials and the continued confidence of analysts in its future prospects.

InvestingPro Insights

As Jasper Therapeutics (NASDAQ:JSPR) continues to make strides in its clinical trials, InvestingPro data offers additional context to the company's financial landscape. Despite the promising clinical results, JSPR's market capitalization stands at $242.44 million, reflecting the early-stage nature of its drug development efforts. The company's price-to-book ratio of 2.44 suggests that investors are placing a premium on its potential future earnings.

InvestingPro Tips highlight that JSPR holds more cash than debt on its balance sheet, which is crucial for a biotech company in the development phase. This financial cushion may provide the necessary runway for ongoing clinical trials and potential commercialization efforts. However, investors should note that JSPR is quickly burning through cash, a common characteristic of pre-revenue biotech firms investing heavily in R&D.

The stock's performance has been volatile, with a significant 72.09% return over the past year, despite a 34.02% decline in the last month. This volatility aligns with the nature of biotech stocks, which can experience sharp movements based on clinical trial results and regulatory decisions.

For investors seeking a deeper understanding of JSPR's potential, InvestingPro offers 11 additional tips, providing a more comprehensive analysis of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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