Affirm stock soars as Q1 earnings smash expectations, guidance lift
Investing.com - Leerink Partners has raised its price target on 4D Molecular Therapeutics (NASDAQ:FDMT) to $17.00 from $16.00 while maintaining an Outperform rating on the stock. FDMT shares are currently trading at $11.72, near their 52-week high of $12.34, after posting impressive returns of 235.91% over the past six months. According to InvestingPro data, analysts have set targets ranging from $16 to $45 for the stock.
The price target increase follows 4D Molecular Therapeutics’ announcement of an exclusive license agreement with Otsuka Pharmaceuticals to develop and commercialize 4D-150 for wet AMD and DME in the Asia-Pacific region, including Japan.
The deal includes an $85 million upfront payment, at least $50 million in development cost sharing over the next three years, up to $336 million in regulatory and commercial milestones, and tiered double-digit royalties on Asia-Pacific sales. This agreement comes at a critical time for FDMT, as InvestingPro data shows the company has been quickly burning through cash with a current market cap of $545.48 million. The company’s strong current ratio of 8.75 indicates its liquid assets exceed short-term obligations.
4D Molecular Therapeutics will continue to lead all Phase 3 clinical activities and plans to open Asia-Pacific and Japan sites in its 4FRONT-2 global trial by the end of 2025 or January 2026, with topline data for 4FRONT-1 and 4FRONT-2 expected in the first half and second half of 2027, respectively.
The proceeds will enable the company to proceed with the global Phase 3 registrational trial in DME following FDA and EMA alignment and 60-week results from the Phase 2 SPECTRA trial reported in July. Investors should note that analysts do not anticipate FDMT to be profitable this year, with an EPS forecast of -$4.49 for FY2025. The company will report its next earnings on November 5, just five days from now.
In other recent news, 4D Molecular Therapeutics has entered into a strategic partnership with Otsuka Pharmaceutical for its 4D-150 therapy in the Asia-Pacific region. The agreement includes an upfront payment of $85 million to 4D Molecular Therapeutics, with an additional $50 million expected for global development activities over the next three years. The company may also receive up to $336 million in potential regulatory and commercial milestone payments, alongside tiered double-digit royalties on net sales in Otsuka’s territories. Additionally, 4D Molecular Therapeutics announced positive 60-week results from its 4D-150 SPECTRA clinical trial in diabetic macular edema, showcasing durable and dose-dependent clinical activity with significant improvements in visual acuity and anatomic control. RBC Capital has reiterated its Outperform rating, noting the company’s potential in the retina market, while Goldman Sachs maintains its Buy rating after the second-quarter earnings report. The company has also initiated North American and global Phase 3 studies of its 4D-150 treatment for wet age-related macular degeneration, with topline data expected in 2027. These developments highlight significant progress and potential for 4D Molecular Therapeutics in its ongoing therapeutic initiatives.
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