Shares of Applied Molecular Transport (AMTI) have dropped 58.6% over the past six months.
The stock can make a successful comeback, as long as the market wants to give it a chance. Thus, I am bullish on this stock. (See AMTI stock charts on TipRanks)
Based in San Francisco, Applied Molecular Transport is a clinical-stage biopharmaceutical developer. It develops patient-friendly oral products aimed at the treatment of autoimmune diseases, as well as inflammatory conditions and metabolic disorders.
Q2 2021
The company is not selling any treatments yet, so it closed the second quarter of 2021 enduring another loss, a bit heavier than this time a year ago ($23.6 million versus $15.4 million). This was due to an increase in research and development expenses, and higher personnel and administrative costs.
In April, the company launched an equity issuance to raise funds to cover expenses related to clinical trials through which its AMT-101 and AMT-126 products will undergo further evaluation.
AMT-101 targets ulcerative colitis and related inflammatory indications, while AMT-126 is designed for diseases triggered by the flawed functioning of the intestinal epithelium barrier.
AMTI had $199.5 million available in cash on hand and short-term investments, as of June 30.
Market Prospects
The company is seeking to develop innovative therapies to treat diseases that hit many people around the world.
These diseases of intestinal walls involve annoying symptoms, sometimes so debilitating that they can severely compromise a patient's quality of life. Patients will generally, though not continuously, always need therapy.
These cases are growing rapidly amid the worldwide population, as they show affinity with modern lifestyles that involve alcohol intake, cigarette smoking, and unbalanced nutrition.
Starting from the fourth quarter of 2021, and full-year 2022, relevant top-line data from AMT-101 and AMT-126 clinical trials should be announced.
If promising, these data could more clearly indicate the beginning of a new commercial-stage era for this company.
Wall Street’s Take
In the past three months, three Wall Street analysts have issued a 12-month price target for AMTI. The average Applied Molecular Transport price target is $78.33, implying 200.2% upside. The analyst rating consensus is a Strong Buy rating, based on three Buys.
Summary
The stock has disappointed so far. The next 12 months could open the door to a new commercial-stage era for this company, though.
Disclosure: At the time of publication, Alberto Abaterusso did not have a position in any of the securities mentioned in this article.
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