On Wednesday, Brookline Capital Markets began coverage on Quince Therapeutics Inc. (NASDAQ:QNCX) with a positive outlook, assigning a Buy rating and setting a price target of $9.00. The stock, which has surged over 170% in the past six months, appears undervalued according to InvestingPro analysis. The firm highlighted the company's innovative AIDE technology platform, which is designed to encapsulate drugs within a patient's own red blood cells.
Quince Therapeutics, with a market capitalization of approximately $81 million and a strong financial health score rated as GOOD by InvestingPro, is currently developing EryDex, a product that uses this technology to deliver dexamethasone sodium phosphate, potentially offering a month-long continuous dosage without the associated toxicity.
This approach is particularly relevant for treating Ataxia-Telangiectasia, a rare and inherited neurodegenerative and immunodeficiency disorder resulting from mutations in the ATM gene. This disease is classified as both an orphan and a pediatric rare disease, indicating its scarcity and the specialized attention it requires.
Despite EryDex not reaching statistical significance in a prior Phase 3 trial that included patients across all age groups, it showed promising results in a subgroup of children aged 6 to 9. Based on these findings, Quince Therapeutics is conducting a new Phase 3 clinical trial focused exclusively on this subgroup, with results anticipated in Q4 2025.
The analyst from Brookline Capital Markets expressed optimism regarding the potential of EryDex as it progresses through clinical trials, citing a favorable risk-reward scenario for Quince Therapeutics.
With a robust current ratio of 9.53 indicating strong liquidity, the company's targeted approach to a specific patient demographic could pave the way for a successful treatment option for Ataxia-Telangiectasia, addressing the needs of a very specific and underserved patient population. Discover more insights and 11 additional ProTips for QNCX on InvestingPro.
In other recent news, Quince Therapeutics has successfully regained compliance with Nasdaq's minimum bid price requirement. The biotechnology firm has also reported positive safety data from its Phase 3 ATTeST trial for EryDex, an investigational treatment for Ataxia-Telangiectasia (A-T). The U.S. Food and Drug Administration (FDA) has granted Fast Track designation to Quince's EryDex System, marking a significant regulatory milestone.
Analysts from Rodman & Renshaw and EF Hutton initiated coverage on Quince Therapeutics with a Buy rating, highlighting the company's innovative approach to treating A-T with EryDex. The company is currently conducting a pivotal Phase 3 NEAT study, with results expected in late 2025.
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