On Wednesday, Ladenburg Thalmann maintained its Buy rating and $45.00 price target for Palisade Bio Inc. (NASDAQ: PALI) stock.
The firm's position comes in light of Palisade Bio's development of a novel oral PDE4 inhibitor, PALI-2108, which shows promise for treating ulcerative colitis (UC) with potentially improved safety and efficacy profiles.
Palisade Bio's PALI-2108 is designed to be activated in the intestine, aiming to reduce gastrointestinal and central nervous system toxicities while minimizing systemic exposure.
This approach could offer a significant advantage over existing UC treatments such as ozanimod, upadacitinib, and etrolizumab, potentially leading to better clinical remission rates.
The company is also advancing the development of PDE-4-related biomarker assays, which could result in companion diagnostic (CDx) tests. These tests are intended to identify patients who are most likely to respond to PALI-2108 treatment.
This dual strategy combines a precision medicine approach with the gut-activated PDE-4 inhibitor, which Ladenburg Thalmann believes positions Palisade Bio favorably for early clinical development success.
PALI-2108's development is particularly noteworthy given the current market performance of apremilast, a PDE4 inhibitor with annual sales exceeding $2 billion.
Apremilast is approved for several conditions, including psoriatic arthritis and plaque psoriasis, but its use is associated with gastrointestinal side effects and requires dose titration. PALI-2108 aims to improve upon these aspects.
Ladenburg Thalmann's endorsement of Palisade Bio underscores the potential of PALI-2108 to become a meaningful treatment option in the UC space, enhancing the therapeutic landscape and possibly offering a more favorable treatment experience for patients.
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