On Wednesday, H.C. Wainwright maintained its Buy rating and $15.00 stock price target for Lisata Therapeutics, Inc (NASDAQ: LSTA), following the company's announcement regarding its ongoing clinical trial.
Lisata Therapeutics reported the treatment of the first patient in the second-line (2L) cholangiocarcinoma (CCA) cohort of the Phase 2a BOLSTER clinical trial. This development marks a significant step in the multi-center study, which is conducted in the United States and evaluates the efficacy of the company's principal drug, certepetide.
The BOLSTER trial is a double-blind, placebo-controlled study that aims to assess the effects of certepetide in combination with standard of care (SoC), as well as SoC alone, in both first-line (1L) and now second-line CCA patients. The progress of the trial has been notably swift, with the enrollment for the 1L CCA cohort concluding nearly six months ahead of initial projections. This accelerated pace has led to the expectation that topline data will be available by mid-2025.
The start of the 2L CCA study arm was prompted by the quick enrollment of the 1L cohort and is supported by recommendations from the investigators involved in the study. This rapid advancement is seen as indicative of the pressing need for new CCA treatment options and the medical community's growing confidence in certepetide's potential to meet this demand.
The firm's analyst highlighted the significance of the trial's progression and the implications for Lisata Therapeutics. With the initiation of the 2L CCA cohort and the accelerated timeline for the anticipated topline data, the outlook for certepetide and Lisata Therapeutics remains positive. The company's commitment to addressing the urgent need for CCA treatments continues to be supported by the investment firm's reiterated Buy rating and price target.
In other recent news, Lisata Therapeutics reported a net loss of $5 million for the second quarter of 2024, with earnings per share (EPS) at ($0.61), surpassing both H.C. Wainwright's estimate of ($0.76) and the consensus of ($0.75).
The FDA granted Orphan Drug Designation to Lisata's investigational drug, certepetide, for treating cholangiocarcinoma, a rare form of cancer. H.C. Wainwright maintained a Buy rating on Lisata's shares, keeping the price target steady at $15.00, following the company's recent advancements.
Certepetide is currently being evaluated in the BOLSTER trial, a Phase 2a study for the treatment of first- and second-line cholangiocarcinoma. The company ended the quarter with $38.3 million in cash, which is expected to support all ongoing and proposed trials up until early 2026. Top-line data from the ASCEND trial for Certepetide is anticipated in Q4 of 2024.
These are among the recent developments within Lisata Therapeutics. The company continues to make strides in the development of Certepetide, focusing on advancing their program through clinical trials and strategic partnerships. Despite the financial loss reported for the quarter, Lisata's management is optimistic about the future, banking on the promising results and regulatory advantages Certepetide has achieved thus far.
InvestingPro Insights
As Lisata Therapeutics, Inc (NASDAQ: LSTA) progresses with its Phase 2a BOLSTER clinical trial, investors and analysts are closely monitoring the company's financial health and market performance. According to InvestingPro data, Lisata Therapeutics currently holds a market capitalization of $25.79 million.
With a negative P/E ratio of -1.25 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at -1.23, the company's profitability challenges are evident. However, the company's stock has shown resilience with a 55.0% return over the past year, suggesting investor optimism in its long-term potential.
InvestingPro Tips for Lisata Therapeutics reveal a mixed financial picture: the company holds more cash than debt, indicating a strong balance sheet (InvestingPro Tip #0), and liquid assets exceed short-term obligations (InvestingPro Tip #4), providing some financial stability. Yet, the company suffers from weak gross profit margins (InvestingPro Tip #1) and is not expected to be profitable this year (InvestingPro Tip #2). These insights are crucial for investors considering the company's potential amidst its clinical developments.
For those seeking a deeper dive into Lisata Therapeutics' financials and market performance, InvestingPro offers additional tips and metrics that can provide a more comprehensive understanding of the company's position. Currently, there are 7 additional InvestingPro Tips available for Lisata Therapeutics, which can be accessed for further detailed analysis.
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