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On Tuesday, Leerink Partners revised their stance on Aclaris Therapeutics (NASDAQ:ACRS), upgrading the company's stock from Market Perform to Outperform. The firm's analyst also significantly increased the price target for Aclaris Therapeutics, setting it at $7.00, a substantial jump from the previous $2.00 target.
The upgrade comes after Aclaris Therapeutics completed a strategic review, which Leerink Partners believes will now turn investor attention to the company's enhanced immunology-focused pipeline. This pipeline includes two biologics in-licensed from Biosion, a private discovery-focused company. These biologics are identified as BSI-045B, an anti-TSLP antibody, and BSI-502, an anti-TSLP/IL4R bispecific antibody.
In addition to the upgrade, Leerink Partners expressed optimism about the company's future, noting the potential for over 120% upside from current levels. The analyst's confidence is further supported by Aclaris Therapeutics' recent announcement of an $80 million private placement, which was oversubscribed. This financial move is intended to bolster the company's pipeline and operational efforts.
Leerink Partners anticipates that the recent developments at Aclaris Therapeutics mark the beginning of a new chapter for the company. The firm expects that the coming 6 to 12 months will be particularly telling for Aclaris Therapeutics, with the potential to further derisk BSI-045B and unlock significant fundamental value for the company.
In other recent news, Aclaris Therapeutics has been the subject of multiple analyst upgrades following the acquisition of two promising treatments for atopic dermatitis from Biosion. BTIG upgraded the company's stock rating from Neutral to Buy, setting a new price target of $8.00. This positive outlook was influenced by the potential of Aclaris' newly acquired treatments, BSI-045B and ATI-2138. Similarly, Jefferies and Piper Sandler also upgraded Aclaris from Hold to Buy and Neutral to Overweight respectively, while Stifel maintained a Hold rating on the company.
Aclaris has made strategic moves to expand its portfolio, securing an exclusive licensing agreement with Biosion. This agreement added two potential immunology drugs, BSI-045B and BSI-502, to its portfolio. Concurrently, the company raised about $80 million through a private stock sale with investors such as Vivo Capital and Forge Life Science Partners participating.
In terms of research and development, Aclaris has initiated a Phase 2a trial for ATI-2138, a potential treatment for moderate-to-severe atopic dermatitis. Furthermore, Aclaris sold a portion of its future royalty earnings from OLUMIANT, a treatment for alopecia areata, to OMERS, a Canadian pension plan, for an upfront payment of $26.5 million.
InvestingPro Insights
Recent data from InvestingPro aligns with Leerink Partners' optimistic outlook on Aclaris Therapeutics (NASDAQ:ACRS). The company's stock has shown remarkable performance, with a 163.87% price return over the past month and a 229.04% return over the last year. This surge in stock price is reflected in the current market capitalization of $224.29 million.
InvestingPro Tips highlight that Aclaris holds more cash than debt on its balance sheet, which could provide financial flexibility as the company focuses on its enhanced immunology pipeline. Additionally, two analysts have revised their earnings upwards for the upcoming period, potentially indicating growing confidence in the company's prospects.
However, investors should note that Aclaris is not currently profitable, with a negative gross profit margin of -284.04% in the last twelve months. This aligns with the InvestingPro Tip suggesting that analysts do not anticipate the company to be profitable this year.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Aclaris Therapeutics, providing a more comprehensive view of the company's financial health and market position.
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