On Wednesday, Jefferies, a global investment banking firm, adjusted its price target for Veru Inc. (NASDAQ:VERU), a biopharmaceutical company, from $1.20 to $1.00 while maintaining a Hold rating on the stock. The adjustment comes as Veru prepares to announce results from a Phase IIB clinical trial focused on obesity treatment.
The ongoing trial is evaluating enobosarm in combination with semaglutide (sema) versus semaglutide alone, with an emphasis on preserving lean body mass (LBM). The analyst from Jefferies anticipates that the trial will achieve statistical significance and be regarded as a "positive" outcome. However, there remains a cautious outlook for the long-term prospects of the drug due to potential regulatory challenges.
According to the analyst, the U.S. Food and Drug Administration (FDA) places a high value on functional benefits, which may not be evidently demonstrated in the Phase IIB results.
This could affect the drug's advancement to Phase III trials. Additionally, the FDA might require a post-marketing cardiovascular study, which along with intellectual property concerns, could influence Veru's ability to secure a partnership for further development.
Veru Inc.'s focus is on developing novel medicines for the management of breast cancer and men's health. The company's product candidates are designed to address unmet medical needs and improve the quality of life for patients. As the market anticipates the trial readout expected in the fourth quarter, investors and stakeholders are closely monitoring the potential implications for Veru's pipeline and market position.
In other recent news, Veru Inc. has been a focal point of several key developments. The company recently held its 2024 Annual Meeting of Shareholders, where a quorum was achieved, leading to the election of its Board of Directors. These directors will serve until the next annual meeting, where their roles may be reaffirmed or changed.
In a related development, Veru Inc. faced a challenge in reaching the required quorum for its 2024 Annual Meeting of Shareholders, with only 49.6% of eligible shares represented. This led to a rescheduling of the meeting, providing Veru Inc. with additional time to solicit proxies.
The pharmaceutical company has also enlisted obesity expert Dr. Steven B. Heymsfield to lead a Phase 2b clinical trial of enobosarm, a drug aimed at preserving muscle and promoting fat loss in patients undergoing GLP-1 RA weight loss treatments. Results of this trial are expected by the end of 2024.
Additionally, Oppenheimer has adjusted its price target for Veru Inc., reducing it to $5.00 from $7.00, while maintaining an Outperform rating on the stock. The firm remains optimistic about enobosarm's potential, citing its clinical history in various settings.
Finally, Veru has confirmed that its current financial resources are sufficient to fund both the 12-week double-blind phase and the subsequent 16-week open-label extension of the Phase 2b trial.
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