Assembly Biosciences stock initiated at Market Outperform by JMP

Investing.com - Assembly Biosciences (NASDAQ:ASMB), which has surged over 130% in the past six months and is trading near its 52-week high of $27.17, received a Market Outperform rating initiation from Citizens JMP analyst Roy Buchanan with a price target of $38.00.

The analyst highlighted Assembly’s development of oral small-molecule antiviral drug candidates, noting that many team members were previously successful drug developers at Gilead (NASDAQ:GILD), which is also Assembly’s largest shareholder. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, providing financial flexibility for its drug development programs.

JMP identified two candidates for treating herpes simplex type 2 (HSV-2) as the clearest value drivers: ABI-5366 and ABI-1179, which the firm expects could reach peak sales of over $4 billion in the U.S. and EU5 markets due to their unique attributes.

The firm stated that Assembly’s current market cap of approximately $430 million and enterprise value of roughly $190 million suggest the market is overlooking the potential of these candidates, with recurrent HSV-2 treatment accounting for $29 (76%) of JMP’s price target.

Beyond HSV-2, JMP sees additional potential in Assembly’s novel oral viral-entry inhibitor ABI-6250 for treating chronic hepatitis delta infection, which has recently produced "intriguing clinical biomarker data" and contributes $4 (10%) to the firm’s price target. InvestingPro subscribers can access additional insights, including 8 more ProTips and detailed financial metrics to better evaluate ASMB’s growth potential.

In other recent news, Assembly Biosciences reported significant advancements in its clinical trials and financial strategies. The company announced positive interim results from its Phase 1b study of ABI-5366, a treatment for recurrent genital herpes, demonstrating a 94% reduction in HSV-2 shedding rate with a 350 mg weekly dose. This result surpasses competitor reductions, which typically range from 80-85%. Additionally, Assembly Biosciences shared promising topline results from its Phase 1b study of ABI-4334 for chronic hepatitis B virus, with notable reductions in HBV DNA and RNA levels across tested cohorts. To further support its viral disease research, Assembly priced a $130 million offering of shares and warrants. Guggenheim raised its price target for Assembly Biosciences to $39, maintaining a Buy rating, following the strong trial data. H.C. Wainwright also initiated coverage with a Buy rating and a $50 price target, highlighting the potential of Assembly’s antiviral pipeline and its collaboration with Gilead Sciences. These developments reflect Assembly Biosciences’ ongoing efforts to advance its therapeutic programs and strengthen its financial position.

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