Annexon stock price target cut to $20 at H.C. Wainwright

On Wednesday, H.C. Wainwright adjusted the price target for Annexon Biosciences (NASDAQ:ANNX) to $20.00 from the previous $30.00, while reaffirming a Buy rating on the company’s stock. The stock currently trades at $2.47, significantly below its 52-week high of $8.40. According to InvestingPro data, analyst targets range from $9 to $20, suggesting substantial upside potential from current levels. The adjustment follows an evaluation of Annexon’s ongoing open-label, single-arm proof of concept (POC) study for ANX1502, aimed at treating cold agglutinin disease (CAD). The study is expected to provide results by mid-2025, with a dataset of up to seven patients.

ANX1502, part of Annexon’s Phase 1 program, has demonstrated positive safety and tolerability data, and has shown potential in lowering C4d levels, an indicator of complement activity, beyond the median baseline C4d serum levels observed in healthy volunteers. This positions ANX1502 as a potential competitor to sutimlimab, the only approved drug for CAD that targets the C1s component in the classical complement pathway.

The reassessment by H.C. Wainwright also includes a comparison to sutimlimab’s Phase 3 CARDINAL study outcomes, which indicated significant improvements in hemoglobin levels and normalization of bilirubin in patients. InvestingPro analysis shows Annexon maintains a strong financial position with a current ratio of 10.37, indicating ample liquidity to fund its clinical programs. The company’s market capitalization stands at $271 million. Analysts at H.C. Wainwright believe that if ANX1502 can demonstrate similar efficacy, particularly in increasing hemoglobin levels by nearly 2 g/dL from baseline and normalizing bilirubin levels in the majority of patients, it could be a positive sign for the program.

The new price target reflects a revised operational expenditure forecast and updated penetration assumptions for Annexon’s Guillain-Barre Syndrome (GBS) program in both the U.S. and European markets. This reevaluation has led to a decrease in the projected price target for Annexon’s stock. While the company reported an EBITDA of -$151.92 million in the last twelve months, InvestingPro analysis suggests the stock is currently undervalued, with 10+ additional exclusive insights available to subscribers.

In other recent news, Annexon Biosciences announced positive topline results from a study evaluating its immunotherapy ANX005 for treating Guillain-Barré Syndrome (GBS). The study, which included a cohort from the IGOS global patient registry, demonstrated significant improvements in muscle strength and reduced treatment burden compared to standard therapies like Intravenous Immunoglobulin (IVIg) and Plasma Exchange (PE). This data is crucial as it meets FDA requirements for the drug’s effectiveness over placebo and comparability with Western patients, supporting a future Biologics License Application (BLA). Following these results, H.C. Wainwright maintained a Buy rating with a price target of $30.00, citing confidence in the drug’s commercial potential. BofA Securities also raised its price target from $11.00 to $12.00, maintaining a Buy rating and expressing optimism about the drug’s potential approval. The firm increased the likelihood of success for the ANX005 program from 60% to 75%, reflecting this in their new price objective. Annexon plans to engage with regulatory authorities and aims to submit a BLA in the first half of 2025. These developments highlight Annexon’s progress in addressing a condition for which no therapies are currently approved in the United States.

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