On Wednesday, RBC Capital adjusted its outlook on shares of Jasper Therapeutics (NASDAQ:JSPR), reducing the price target to $68 from the previous $70 while maintaining an Outperform rating on the stock. The modification follows the company's announcement regarding the initial BEACON trial readout for briq, its leading drug candidate.
Jasper Therapeutics reported that the readout, which was previously expected in the third quarter of 2024, is now confirmed for the fourth quarter of the same year. Additionally, a new dose cohort of 180mg every eight weeks has been added to the study.
The change in the BEACON trial timeline is attributed to a strong enrollment rate that has facilitated the generation of more comprehensive data across all dose cohorts. According to the firm, the comprehensive dataset and the potential for selecting optimal doses from this readout outweigh the slight delay in the timeline. The firm's analyst emphasized that the totality of the data set and the possibility of identifying the best dosages from the upcoming results are seen as positive developments despite the adjusted schedule.
Furthermore, Jasper Therapeutics has provided updates on other clinical trials. The SPOTLIGHT study update in Chronic Inducible Urticaria (CIndU) and the commencement of a trial for asthma are both now slated for the fourth quarter of 2024. This synchronized timing of multiple trial updates has led RBC Capital to adjust its financial model for Jasper Therapeutics, resulting in the updated price target.
The firm reiterated its Outperform rating for Jasper Therapeutics, along with a Speculative Risk designation, signaling confidence in the company's prospects despite the revised timelines and price target. The report suggests that the firm views the company's recent developments and the upcoming trial readouts as key factors in its continued positive stance on the stock.
In other recent news, Jasper Therapeutics has been the recipient of positive outlooks from several analysts, including TD Cowen, BTIG, and Stifel, all of whom have initiated coverage with a Buy rating. Notably, TD Cowen reaffirmed its Buy rating, highlighting the potential of Jasper's Briqui, which is currently under study in the BEACON trial. The full Phase 2 data from this study is expected to be presented in 2025 at the American Academy of Allergy, Asthma & Immunology conference.
Jasper Therapeutics is also preparing for a proof-of-concept asthma challenge study scheduled to commence in the fourth quarter of 2024. This is part of the company's ongoing efforts to develop a prefilled syringe, which is expected to be pivotal for its operations next year. The company's therapy, targeting Chronic Spontaneous Urticaria (CSU), represents a substantial market opportunity that could grow to $7 billion annually, according to estimates by Novartis (SIX:NOVN).
In addition, Jasper Therapeutics has announced executive changes and stockholder approvals, including new equity plans and executive employment agreements. These changes aim to incentivize employees through equity ownership opportunities and ensure leadership stability. The company is making significant strides in the biopharmaceutical industry as it continues to develop its product pipeline.
BTIG set a price target of $90.00 for Jasper's shares, citing the potential of briquilimab in treating chronic urticaria and severe asthma. Stifel also initiated coverage with a Buy rating, setting a price target of $86.00, based on the potential success of briquilimab in treating both Chronic Spontaneous Urticaria (CSU) and Chronic Inducible Urticaria (CIndU). These recent developments reflect the growing recognition of Jasper Therapeutics' innovative efforts in the biopharmaceutical industry.
InvestingPro Insights
As Jasper Therapeutics (NASDAQ:JSPR) navigates its clinical trial updates and the revised timeline for its BEACON trial, investors are keeping a close watch on the company's financial health and stock performance. According to InvestingPro data, Jasper Therapeutics holds a market cap of approximately $284.36 million, with a notably high price volatility, reflected in its Price / Book ratio of 2.51 as of Q1 2024.
InvestingPro Tips highlight the company's financial position, revealing that Jasper Therapeutics holds more cash than debt on its balance sheet, which could provide some resilience against financial headwinds. However, the company is also quickly burning through cash, a point of concern for long-term sustainability.
Moreover, analysts do not anticipate the company will be profitable this year, which aligns with the negative operating income of -$69.99 million over the last twelve months as of Q1 2024. Despite these challenges, the stock has experienced a significant return over the last week with a 15.86% price total return, signaling investor enthusiasm in the short term.
While the stock price movements are quite volatile, Jasper Therapeutics' liquid assets exceed its short-term obligations, indicating a degree of liquidity that may support its operational needs in the near term. For investors seeking a deeper dive into Jasper Therapeutics' financial metrics and stock performance, InvestingPro offers additional insights and tips to aid in making informed decisions. There are a total of 9 InvestingPro Tips available for Jasper Therapeutics, which can be accessed for further detailed analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.