BiomX stock target soars to $21 on Phase 2 trial success

Published 01/04/2025, 12:38
BiomX stock target soars to $21 on Phase 2 trial success

On Tuesday, H.C. Wainwright analysts raised the price target for BiomX (NYSE:PHGE) shares significantly to $21.00, up from the previous $2.00, while maintaining a Buy rating on the stock. According to InvestingPro data, the stock currently trades at $0.56, with analyst targets ranging from $2 to $16. The company’s market capitalization stands at approximately $14 million, with the stock down over 86% in the past year. This adjustment follows BiomX’s announcement of positive outcomes from its Phase 2 trial of BX211 for the treatment of diabetic foot osteomyelitis (DFO) associated with S. aureus bacteria.

The trial enrolled a total of 41 patients, with 26 receiving BX211 both intravenously and topically in the first week, followed by weekly topical application through week 12. The remaining 15 patients were assigned to a placebo group. Throughout the 12-week study, all participants received the standard care required for their condition.

The primary results from the trial indicated that BX211 led to a statistically significant and sustained reduction in ulcer size, with a noticeable separation from the placebo group starting at week 7. By week 10, the difference in ulcer size reduction exceeded 40%, and statistical significance was observed at week 12 (p=0.046) and week 13 (p=0.052). Additionally, BX211 significantly improved ulcer depth by week 13 (p=0.048) and reduced ulcer area expansion (p=0.017).

The safety profile of BX211 was also noteworthy, as the treatment was found to be safe and well-tolerated by patients. While these clinical developments are promising, InvestingPro analysis reveals that BiomX holds more cash than debt on its balance sheet, though it’s quickly burning through cash. The company maintains a current ratio of 2.48, indicating sufficient liquidity to meet short-term obligations. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report. Furthermore, BX211 demonstrated favorable trends across various clinical parameters, including a higher proportion of visits with no clinical evidence of infection, evidence of resolving DFO by MRI/X-ray at week 12, a greater proportion of patients with abnormal baseline C-Reactive Protein (CRP) achieving at least a 50% reduction at any point during the study, and greater improvement on the Wagner scale, which is used to classify the severity of diabetic foot ulcers.

The positive results from the Phase 2 trial and the subsequent increase in the price target to $21, reflect the potential of BX211 as a treatment option for DFO. This update comes after BiomX’s 1-for-10 reverse stock split. According to InvestingPro’s Financial Health assessment, the company currently shows a WEAK overall score, with analysts not anticipating profitability this year. The company’s next earnings report is expected on May 13, 2025.

In other recent news, Biomx Inc . has made notable progress in its clinical trials, particularly with its BX211 phage therapy for diabetic foot osteomyelitis. The company successfully completed a Phase II trial, which demonstrated the treatment’s efficacy against antibiotic-resistant bacteria, marking a significant step forward in this area of biotechnology. Despite these positive trial results, specific earnings data were not disclosed, and the company’s stock experienced a decline in aftermarket trading, reflecting a cautious market outlook. Biomx also raised $12 million to support its ongoing studies in cystic fibrosis and diabetic foot osteomyelitis, with key investors including Deerfield Management and the Cystic Fibrosis Foundation. The company is actively engaging with regulatory bodies and planning a potential Phase III trial for BX211, a promising development given that no new drugs for diabetic foot infections have been approved in the past 20 years. Analysts from firms like H.C. Wainwright have expressed interest in the company’s potential for securing additional non-dilutive funding sources. Biomx’s CEO, Jonathan Seliman, emphasized the significance of these trial results, describing them as a "watershed moment for phage therapy."

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