On Thursday, Brookline Capital Markets maintained a Buy rating on X4 Pharmaceuticals (NASDAQ:XFOR), with a steady price target of $4.32. The firm's stance comes after the release of interim phase II results for Mavorixafor, a treatment for chronic neutropenia (CN). The results, which were reported today, showed that Mavorixafor therapy led to durable and sustained increases in neutrophil counts, aligning with the study's predefined goals.
The findings from today's interim analysis of 15 patients build upon earlier data presented for three patients on December 9, 2023, at the Annual Society of Hematology meeting. The positive outcomes of the phase II trial, along with endorsements from key opinion leaders during today's call, bolster expectations for successful phase III results and quick uptake by healthcare providers and patients.
Brookline Capital Markets highlighted that the phase III study for Mavorixafor has already commenced enrollment, which is expected to last 12 months, followed by a 12-month dosing period. Results from this final phase of clinical trials are anticipated in the second half of 2026. Based on the latest data, the firm has slightly adjusted its forecast for the drug's potential market launch in the treatment of CN, as detailed in Exhibit 2.1 of their report.
The adjustments to the launch timeline have resulted in an estimated 6% decrease in projected revenue for 2027. However, this is counterbalanced by a reduced investment risk stemming from the recent phase II data. The firm has decided not to alter the target price for X4 Pharmaceuticals' shares, indicating confidence in the drug's market potential despite the revised revenue projections.
In other recent news, X4 Pharmaceuticals has been the focus of several significant developments. The company has reported promising interim results from a Phase 2 clinical trial for mavorixafor, a therapy aimed at treating chronic neutropenia. Stifel has maintained a Buy rating on X4 Pharmaceuticals, indicating confidence in the company's ongoing trials and strategic plans, despite a 20% discontinuation rate reported in the trial.
In addition, X4 Pharmaceuticals has secured $125 million in capital, extending its cash runway into late 2025. This financial reinforcement supports the company's drug development efforts, including the launch of XOLREMDI™ and the advancement of mavorixafor. The company reported a net loss of $51.8 million in the first quarter of 2024 but maintains a strong liquidity position of $81.6 million.
InvestingPro Insights
As X4 Pharmaceuticals (NASDAQ:XFOR) garners attention with promising phase II results for its Mavorixafor treatment, InvestingPro data provides a snapshot of the company's financial health. With a market cap of $112.69 million, XFOR's financial metrics indicate a challenging landscape. The company's Price / Book ratio, as of the last twelve months leading into Q1 2024, stands at a towering 162.1, signaling a high valuation compared to the company's book value. Additionally, the firm's operating income and EBITDA for the same period reflect significant losses, at -$115.51M and -$115.15M respectively.
InvestingPro Tips suggest a mixed financial situation for XFOR. On one hand, the company holds more cash than debt, offering some financial flexibility. On the other hand, it is quickly burning through cash and analysts have revised earnings downwards for the upcoming period, indicating potential concerns for future profitability. Notably, the company is not expected to be profitable this year and has been unprofitable over the last twelve months. For investors looking for more comprehensive analysis, there are additional tips available on InvestingPro, which can be accessed with a special offer using the coupon code PRONEWS24 for an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.