Purple Biotech Ltd. (NASDAQ: PPBT) has received a significant price target increase from H.C. Wainwright, with the firm raising the target to $33 from the previous $8 while maintaining a Buy rating on the stock.
The adjustment comes after Purple Biotech revealed additional interim data from its Phase 2 study, which showed promising results for the treatment of second-line pancreatic cancer (PDAC).
The data, presented at the AACR Special Conference on Advances in Pancreatic Cancer Research, included a new biomarker analysis indicating an improvement in overall survival (OS) when using the company's treatment regimen.
The study evaluated the combination of CM24 with nivolumab and a chemotherapy cocktail (Nal-IRI/5FU/LV) against the chemotherapy alone.
The biomarker analysis focused on myeloperoxidase (MPO) levels, a marker associated with the body's immune response. Findings suggest that patients with MPO levels below 350 ng/mL could see an OS improvement when treated with the CM24-based regimen. Specifically, these patients showed a 62% potential reduction in the risk of death, translating to a 3.3-month median OS improvement.
Additionally, the study identified other potential biomarkers, including high CEACAM1 tumor cells and low PD-L1 expression, which were associated with a 45% and 65% reduction in the risk of death, respectively.
These results contrast with a 25% reduction in risk of death and a 2.1-month median OS improvement observed in the overall patient population.
In other recent news, Purple Biotech has encountered issues with a trial cohort in its CM24 Phase 2 study for pancreatic cancer treatment, which led H.C. Wainwright to cut its stock target. Despite this, the firm maintained a Buy rating.
The cohort issue does not impact the previously reported positive interim data from the Nal-IRI cohort. Purple Biotech is exploring partnership opportunities for a Phase 3 trial, but is also considering proceeding independently if it can secure the necessary funding.
On the other hand, the company has been granted a 180-day extension by Nasdaq to meet the stock market's minimum bid price requirement, securing its continued listing on the Nasdaq Capital Market until January 2025. This recent development does not affect the company's standing on the Tel Aviv Stock Exchange.
Furthermore, Purple Biotech has reported significant findings from a Phase 2 study on metastatic pancreatic ductal adenocarcinoma (PDAC) treatment. The study demonstrated a reduction in the risk of death and disease progression or death in the CM24 treatment arm.
InvestingPro Insights
As Purple Biotech Ltd. (NASDAQ:PPBT) garners attention with its promising clinical data and revised price targets, it's crucial for investors to consider the company's financial health and market performance. InvestingPro data reveals a market capitalization of $11.64 million, indicative of a smaller biotech player in the space. The company's P/E ratio stands at -0.57, reflecting its current lack of profitability, a detail further underscored by an operating income of approximately -$19.67 million over the last twelve months as of Q2 2024.
Purple Biotech's stock has been trading near its 52-week low, with the price at the previous close marked at $7.1. This performance is in line with a 6-month price total return of -49.95%, showcasing significant volatility and investor caution. The InvestingPro Tips highlight that while the company holds more cash than debt, which is a positive sign for financial stability, it is rapidly burning through cash and is not expected to be profitable this year. Moreover, the stock has been impacted heavily over the last six months, reflecting the high-risk nature often associated with biotech investments.
For investors considering Purple Biotech as a potential addition to their portfolios, additional insights are available. InvestingPro offers several more tips, including detailed analyses on valuation, profitability, and market performance trends, which could be crucial for making an informed investment decision. For a more comprehensive understanding, investors can explore the full list of 9 additional InvestingPro Tips on the platform.
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