Oppenheimer has maintained a positive outlook on Jasper Therapeutics (NASDAQ: JSPR), reiterating an Outperform rating with a steady price target of $80.00.
The firm's stance comes after evaluating long-term results from a Phase 2 study on barzolvolimab for Chronic Spontaneous Urticaria (CSU), presented at the European Academy of Dermatology and Venereology (EADV) conference.
According to the firm, the efficacy of barzolvolimab appeared impressive, showing an enhanced response from week 12 to week 52.
This sustained effectiveness has sparked discussions on the safety profile, which recently caused fluctuations in the stock prices of both Celldex (NASDAQ:CLDX) Therapeutics (the company developing barzolvolimab) and Jasper Therapeutics.
The analyst from Oppenheimer suggested that the strong performance of barzolvolimab could validate the anti-cKit mechanism of action (MoA), which is also shared by Jasper's candidate drug, briquilimab.
The firm believes that briquilimab could distinguish itself with a potentially favorable adverse event (AE) profile, attributed to its unique pharmacokinetic (PK) profile and dosing regimen.
Following a meeting with Jasper Therapeutics' management, Oppenheimer reaffirmed its optimism for the company's prospects.
In other recent news, Jasper Therapeutics has made significant strides in its clinical trials. The biotech firm has been granted approval by Health Canada to commence a Phase 1b/2a clinical trial for briquilimab, a potential treatment for asthma.
The trial, set to begin patient enrollment soon, will test a single 180mg dose of briquilimab on 30 asthma patients across multiple sites in Canada and the EU, with initial data expected in the latter half of 2025.
In addition to this, 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. Several analyst firms, including JMP Securities, H.C. Wainwright, and RBC Capital, have assigned favorable ratings to Jasper Therapeutics, highlighting the potential of briquilimab.
The company has also announced that its SPOTLIGHT study in Chronic Inducible Urticaria and a trial for asthma are scheduled for the fourth quarter of 2024. Furthermore, Jasper is preparing for a proof-of-concept asthma challenge study, also slated for the same quarter.
InvestingPro Insights
Recent InvestingPro data provides additional context to Oppenheimer's optimistic outlook on Jasper Therapeutics (NASDAQ:JSPR). Despite the company's current unprofitability, with a negative EBITDA of -$67.01 million over the last twelve months, JSPR has shown remarkable stock performance. The company's year-to-date price total return stands at an impressive 138.66%, with a one-year return of 169.0%.
This strong stock performance aligns with Oppenheimer's Outperform rating and $80 price target. However, it's worth noting that the stock has recently experienced a setback, with a -12.56% return over the past week. This volatility is reflected in an InvestingPro Tip, which notes that "Stock price movements are quite volatile."
Another relevant InvestingPro Tip highlights that "3 analysts have revised their earnings upwards for the upcoming period." This could be related to the positive long-term results from the Phase 2 study on barzolvolimab and the potential implications for Jasper's own candidate, briquilimab.
Investors should be aware that while the market seems optimistic about Jasper's prospects, the company is "Quickly burning through cash" according to another InvestingPro Tip. This is a common characteristic of biotech companies in the development stage and underscores the importance of the upcoming BEACON study results.
For a more comprehensive analysis, InvestingPro offers 8 additional tips for JSPR, providing a deeper understanding of the company's financial health and market position.
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