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On Wednesday, H.C. Wainwright adjusted its price target for Acrivon Therapeutics Inc (NASDAQ:ACRV) to $19.00, down from the previous target of $22.00, while upholding a Buy rating on the company’s shares. According to InvestingPro data, the company currently trades at a price-to-book ratio of 0.85 and appears undervalued based on Fair Value analysis. The stock has experienced a -25.76% price return over the past six months, with analyst targets ranging from $17 to $30. The revision follows Acrivon’s investor webinar held on Tuesday, where the company presented updated results from its ongoing Phase 2 study of ACR-368, particularly focusing on the endometrial cancer cohort. Additionally, Acrivon announced a strategic shift, opting to de-emphasize the development of treatments for ovarian and bladder cancers.
The latest data from the Phase 2 study showcased an objective response rate (ORR) of 35% (7 out of 20 patients) among those who tested positive for the OncoSignature biomarker (BM+), a rate consistent with previous findings. InvestingPro analysis reveals that while the company maintains strong liquidity with a current ratio of 12.75 and holds more cash than debt, it’s currently experiencing rapid cash burn - a crucial factor for investors monitoring clinical-stage biotech companies. The study enrolled a total of 67 patients, with a 34% BM+ rate. Notably, the patient population in the trial was considered more severe compared to those in competing trials, including a majority with serous and carcinosarcoma, two median prior lines of therapy, 60% refractory to the last line of treatment, and all having received prior PD-1/PD-L1 treatment.
Despite the confirmed ORR (cORR) dropping from 62.5% in a smaller patient group reported in September 2024 to 35% in the current update, the results are still viewed as promising. The disease control rate (DCR) was reported at 80%. Analysts at H.C. Wainwright noted that while a decrease in ORR was anticipated with the expansion of the patient population, the current rate of 35% remains encouraging when compared to second-line (2L) therapies, which typically show a 10-15% ORR.
The median duration of therapy for responders has exceeded 7.9 months and is ongoing, while the median duration for all patients in the study was 3.7 months. The firm reiterated its Buy rating for Acrivon Therapeutics, despite the reduced price target, indicating a continued positive outlook for the stock’s potential. With a market capitalization of $168 million and an overall Financial Health score of "FAIR" from InvestingPro, investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of the company’s fundamentals, valuation metrics, and growth prospects among 1,400+ top stocks.
In other recent news, Acrivon Therapeutics has shared significant updates that are drawing attention from investors. The company announced that its ACR-368 OncoSignature assay has received Breakthrough Device designation from the FDA, a move that could expedite the development of treatments for endometrial cancer. This designation highlights the assay’s potential in identifying patients likely to respond to Acrivon’s lead drug candidate, ACR-368, which is part of their precision oncology efforts. Additionally, Acrivon has appointed Adam Levy as the new Chief Financial Officer, effective April 1, 2025, following the departure of Rasmus Holm-Jorgensen for personal reasons.
Cantor Fitzgerald maintained its Overweight rating on Acrivon, praising the company’s strategic focus on endometrial cancer despite a narrower total addressable market. Meanwhile, JMP Securities reiterated its Market Outperform rating and $17.00 price target, noting the promising profile of ACR-368 in metastatic endometrial cancer, even with a decrease in objective response rate. Citizens JMP also reaffirmed its Market Outperform rating and $17.00 price target, expressing anticipation for upcoming research and development events.
The company’s ongoing Phase 2b trial of ACR-368 is a key focus, with clinical data showing a strong response rate in biomarker-positive patients. Acrivon’s AP3 platform continues to be central to its strategy, supporting the development of its clinical-stage assets, including ACR-2316, which is advancing in Phase 1 trials. These developments underscore Acrivon’s commitment to precision oncology and its efforts to innovate in the field of cancer treatment.
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