On Tuesday, H.C. Wainwright maintained a Buy rating on shares of Lisata Therapeutics, Inc (NASDAQ:LSTA) with a steady price target of $15.00. The decision followed Lisata's announcement of its second-quarter financial results for 2024, which were revealed after the market closed on Monday. The company reported earnings per share (EPS) of ($0.61), surpassing both the H.C. Wainwright's estimate of ($0.76) and the consensus of ($0.75).
Lisata Therapeutics concluded the quarter with $38.3 million in cash. The management of Lisata expressed confidence that this amount is sufficient to support all ongoing and proposed trials, with a financial runway extending into early 2026. This assurance comes as the company continues to progress with its lead candidate, certepetide (formerly LSTA1), through clinical trials in multiple studies.
The company's recent advancements have set the stage for several clinical milestones anticipated to continue into 2025. These developments have been a key factor in H.C. Wainwright's reaffirmation of the positive outlook on Lisata's stock.
The biopharmaceutical company's focus on advancing its lead candidate is part of its broader efforts to develop innovative treatments. With multiple clinical milestones expected in the near future, Lisata's strategic direction appears to be on track, as reflected in the sustained Buy rating and price target by H.C. Wainwright.
In other recent news, Lisata Therapeutics reported a decrease in operating expenses and a net loss of $5 million for Q2 2024. The company's research and development costs dropped to $2.6 million from $3.2 million due to a completed trial, while general and administrative expenses reduced to $2.9 million from $3.7 million, largely due to one-time severance costs.
In terms of product development, the company's novel investigational product, Certepetide, is undergoing multiple clinical trials for treating advanced solid tumors and has received fast track and orphan drug designations.
Top-line data from the ASCEND trial for Certepetide is anticipated in Q4 of 2024. In addition, Lisata is pursuing multiple global clinical trials and considering additional trials and strategic partnerships. CEO David Mazzo expressed optimism about Certepetide's potential and the company's strategy for its advancement.
Despite the reported net loss, Lisata Therapeutics continues to make progress in its development of Certepetide, focusing on advancing their program through clinical trials and strategic partnerships. These are some of the recent developments within the company.
InvestingPro Insights
As Lisata Therapeutics, Inc (NASDAQ:LSTA) garners a Buy rating from H.C. Wainwright, it's worth noting key financial metrics and market performance data from InvestingPro. Lisata's cash position is robust, with the company holding more cash than debt on its balance sheet, aligning with the management's statement of a solid financial runway into early 2026. This is a critical factor for investors considering the company's capacity to fund its clinical trials and research initiatives.
However, it's important to consider that the company's gross profit margins have been weak, and analysts do not anticipate Lisata will be profitable this year. In fact, Lisata has not been profitable over the last twelve months, which is reflected in its negative P/E ratio of -1.22. Moreover, the stock has experienced a significant downturn over the last month, with a price total return of -20.4%. This contrasts with the 7.3% year-to-date price total return, suggesting recent volatility in the stock's performance.
InvestingPro Tips also reveal that Lisata's liquid assets exceed its short-term obligations, providing some assurance regarding the company's short-term financial health. However, investors should be aware that Lisata does not pay a dividend, which may be a consideration for those seeking income-generating investments. For more detailed analysis and additional tips, there are 8 more InvestingPro Tips available on InvestingPro.
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