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On Friday, H.C. Wainwright maintained a Buy rating and a $2.00 price target on shares of BiomX (NYSE:PHGE). The firm's stance follows BiomX's third-quarter financial results released on November 14, which showed earnings per share (EPS) of $0.31, surpassing the analyst's projection of a $0.06 loss. The notable EPS difference primarily stemmed from the change in the fair value of the warrants issued during the company's financing round in March 2024.
BiomX concluded the quarter with $24.7 million in cash reserves. The company's management has expressed confidence that this amount will support its operations until the fourth quarter of 2025. BiomX's strategic focus remains on the clinical development of its two principal assets, BX211 and BX004. BX211 is aimed at treating diabetic foot osteomyelitis (DFO), while BX004 is being developed for chronic pulmonary infections in cystic fibrosis (CF) patients.
Regarding BX211, BiomX has completed the enrollment for its Phase 2 study, which examines the safety, tolerability, and efficacy of the treatment in DFO patients with S. aureus infections. The company is on schedule to disclose the initial study results in the first quarter of 2025.
These results will include week 13 top-line data on wound healing. A further update, expected in the first quarter of 2026, will assess amputation rates and osteomyelitis resolution over a 52-week period.
For BX004, BiomX reported favorable safety and efficacy outcomes from the Phase 1b/2a trial targeting chronic pulmonary infections caused by P. aeruginosa in CF patients. After conducting a Type C meeting with the FDA, the company indicated that the discussion was productive and that the clinical development plans for BX004 are proceeding without changes.
However, due to manufacturing delays, the anticipated release of the top-line data from this study has been pushed to the first half of 2026. Despite these delays, H.C. Wainwright reaffirmed its Buy rating and price target for BiomX.
In other recent news, BiomX Inc. has released its third-quarter financials for 2024 and provided updates on their clinical programs. The company completed patient enrollment for its BX211 Phase 2 trial in diabetic foot osteomyelitis (DFO) and expects top line results in early 2025.
Despite manufacturing delays for BX004, a treatment for cystic fibrosis-related lung infections, the company reported positive safety and efficacy results from its Phase 1b/2a trial.
BiomX also received a $36.8 million non-dilutive funding from the U.S. Defense Health Agency for the DFO program. However, these manufacturing delays have pushed the expected report of top line results for the BX004 Phase 2b study to the first half of 2026. Despite these setbacks, BiomX's cash reserves are estimated to fund operations into the fourth quarter of 2025.
These are some of the recent developments in the company's operations. The company's management has expressed confidence in the revised manufacturing process and timelines for BX004. As per analyst notes, BiomX is approaching significant milestones with its DFO Phase 2 trial, and its financial position is solid, with sufficient cash to fund operations into late 2025.
InvestingPro Insights
Despite H.C. Wainwright's optimistic stance on BiomX (NYSE:PHGE), recent InvestingPro data paints a more challenging picture for the company. As of the last twelve months ending Q2 2024, BiomX reported an adjusted operating income of -$28.7 million, reflecting the company's ongoing investment in its clinical pipeline without generating significant revenue.
InvestingPro Tips highlight that BiomX is "quickly burning through cash" and "suffers from weak gross profit margins." These factors align with the company's focus on clinical development and the absence of commercialized products. However, it's worth noting that BiomX "holds more cash than debt on its balance sheet," which supports management's assertion that current cash reserves will fund operations until Q4 2025.
The stock's performance has been concerning, with InvestingPro data showing a one-year price total return of -80.21% as of the most recent data. This decline is consistent with the InvestingPro Tip indicating that the "stock has fared poorly over the last month" and has "taken a big hit over the last six months."
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for BiomX, providing a deeper understanding of the company's financial health and market position.
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