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On Thursday, Baird reiterated its Outperform rating and $17.00 price target on Alumis Inc (NASDAQ:ALMS), following the presentation of promising data from the company’s Phase 1 study of A-005. With the stock currently trading at $3.52 and showing signs of being oversold according to InvestingPro analysis, Baird’s target suggests significant upside potential. The study results were shared at the ACTRIMS 2025 forum, showcasing A-005’s potential as a treatment option.
Alumis’s A-005, a drug currently under investigation, demonstrated favorable pharmacokinetics and safety in its first-in-human Phase 1 study. The study highlighted that A-005 achieved high cerebrospinal fluid (CSF) exposure, which was more than four times the peripheral plasma concentration and the in vitro established IC90 at nine hours post-dose. This suggests that the drug could effectively reach its target in the human body. The company maintains a strong financial position with more cash than debt and a healthy current ratio of 6.01, providing runway for continued development.
The pharmacokinetic and pharmacodynamic relationship of A-005 showed a high correlation, with an R2 value of 0.89, using IFNα-induced pSTAT3 inhibition as the measure. This strong correlation is indicative of the drug’s consistent and predictable effects based on the dosage administered.
Safety is a critical aspect of any new medication, and A-005’s safety profile was encouraging. The treatment-emergent adverse events (TEAEs) observed were mild to moderate in severity, and importantly, there were no TEAEs leading to discontinuation of the study. Additionally, no clinically relevant trends were found in laboratory abnormalities or vital signs, which further supports the drug’s tolerability.
Looking ahead, Baird’s analyst expressed optimism about the future of A-005, particularly in light of these early findings. The initiation of a Phase 2 trial for A-005 in multiple sclerosis (MS) is anticipated in the second half of 2025, which will be a significant milestone for Alumis as it continues to develop and evaluate the drug’s efficacy and safety in a larger patient population. Despite the stock’s 61.9% decline over the past six months, InvestingPro data shows strong analyst consensus with 12 additional insights available to subscribers. The stock currently appears undervalued based on InvestingPro’s Fair Value analysis.
In other recent news, Alumis Inc. reported a larger-than-expected net loss for the fourth quarter of 2024, with a loss of $1.73 per share, surpassing analyst predictions of a $1.39 per share loss. Research and development expenses were reported at $87.2 million, exceeding the anticipated $64.8 million. Despite these financial challenges, H.C. Wainwright maintained a Buy rating on Alumis, though it adjusted the 12-month price target from $19 to $15. Cantor Fitzgerald also reaffirmed an Overweight rating on Alumis, highlighting the potential of its psoriasis treatment, ESK-001, and the strategic benefits of its anticipated merger with SLRN. Alumis is advancing ESK-001 through Phase 3 trials, with promising Phase 2 data presented at the American Academy of Dermatology meeting. Additionally, Alumis is progressing with A-005, a TYK2 inhibitor for multiple sclerosis, following positive Phase 1 trial results. The company plans to present further data on this drug at the ACTRIMS Forum 2025. Alumis’s pro forma cash position of $737 million is expected to support its operations into 2027, aiding its developmental pipeline.
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