Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Goldman Sachs has reiterated its Buy rating and $38.00 price target on 4D Molecular Therapeutics (NASDAQ:FDMT) following the company’s second-quarter earnings report. Currently trading at $5.50, the stock sits well below analyst targets ranging from $10 to $45. According to InvestingPro analysis, FDMT appears undervalued based on its Fair Value assessment.
The biopharmaceutical company has initiated North American and global Phase 3 studies of its 4D-150 treatment for wet age-related macular degeneration (AMD (NASDAQ:AMD)), with topline data expected in the first half of 2027 and second half of 2027, respectively.
Goldman Sachs noted that the Phase 1 trial for 4D-710 in cystic fibrosis has completed enrollment, with interim data now expected in the fourth quarter of 2025, slightly later than the previous second-half 2025 timeline to allow sufficient follow-up for the last enrolled patient.
The firm views 4D Molecular’s strategic prioritization and workforce reduction as logical steps that will extend the company’s cash runway into 2028, with the cost savings partially offsetting increased R&D expenses from the wet AMD trials.
While Goldman Sachs remains constructive on the company’s technology and the probability of success for the Phase 3 wet AMD trials, it acknowledges market concerns about commercial dynamics, including competition from aflibercept biosimilars for the company’s ophthalmology programs.
In other recent news, 4D Molecular Therapeutics announced positive 60-week results from its 4D-150 SPECTRA clinical trial for diabetic macular edema (DME). The company’s 4D-150 treatment showed durable and dose-dependent clinical activity, leading to sustained improvements in visual acuity and anatomical control. At the Phase 3 dose level, there was a 78% reduction in treatment burden compared to the projected on-label aflibercept 2mg administered every eight weeks. These developments come as the company provided a regulatory update on the trial. The successful trial results are a significant milestone for 4D Molecular Therapeutics. The company has not announced any mergers or acquisitions recently. Analyst upgrades or downgrades were not reported in the latest updates. The focus remains on the promising clinical outcomes and their implications for future regulatory approvals.
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