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Tuesday, Stoke Therapeutics (NASDAQ:STOK) received a reiterated Buy rating and a $29.00 price target from BTIG. According to InvestingPro data, analyst targets for STOK range from $15 to $35, with the stock showing impressive momentum through a 102.66% return over the past year. The firm’s analysts highlighted the company’s potential to refocus on its ADOA and other pipeline assets, thanks to a substantial financial deal. Stoke Therapeutics recently secured $165 million upfront and a commitment to cover 30% of ongoing Phase 3 trial costs, including trial and market development expenses. This funding is expected to bolster the company’s resources significantly. InvestingPro analysis shows the company maintains a healthy financial position with a current ratio of 5.09, indicating strong liquidity to support its development programs.
The analysts at BTIG expressed enthusiasm for Stoke’s TANGO approach, which aims to produce more protein from naturally occurring and regulated mRNA. This method has the potential to address a wide range of genes with established disease relevance. The firm also noted that the substantial upfront payment for ex-U.S. rights could attract additional partners to Stoke Therapeutics, further leveraging the TANGO technology.
Biogen (NASDAQ:BIIB, Neutral), with its extensive worldwide commercial reach, was cited as an ideal partner for Stoke Therapeutics. Biogen’s strategic interest in such deals was mentioned during their fourth-quarter earnings call, where they articulated a preference for partnerships over acquisitions due to the high cost of immediate revenues.
Looking ahead, BTIG anticipates the next major update for STK-001, Stoke’s therapeutic candidate for Dravet syndrome, to be highly promising. The treatment is currently in ongoing trials, with non-seizure effects already making a significant impression. With revenue growth of 81.08% in the last twelve months, InvestingPro subscribers can access 6 additional ProTips and comprehensive financial metrics to better evaluate STOK’s growth trajectory. The analysts believe that the data so far indicate the Phase 3 protocol could demonstrate a treatment effect on Major Motor Seizures in Dravet patients well above the approval threshold set by the FDA. BTIG sees the FDA’s agreement to a single pivotal trial as a major victory for Stoke Therapeutics, underscoring the treatment’s potential and the company’s prospects.
In other recent news, Stoke Therapeutics has made significant strides in its research on Dravet syndrome, a severe form of epilepsy. The company’s investigational drug, zorevunersen, has been granted a Breakthrough Therapy Designation by the U.S. Food and Drug Administration (FDA), indicating its potential to significantly improve treatment over existing options. This designation could expedite the development and review process for the drug.
Stoke Therapeutics also announced that it has finalized the design for its Phase 3 EMPEROR study of zorevunersen, following regulatory alignment with the FDA, EMA, and PMDA. The study, which is expected to begin in mid-2025 and conclude by the end of 2027, aims to demonstrate the drug’s efficacy in reducing major motor seizure frequency and improving behavior and cognition in children and adolescents affected by Dravet syndrome.
Cantor Fitzgerald has reiterated an Overweight rating on Stoke Therapeutics, despite a recent dip in the company’s shares. The firm views the current stock price as an opportunity for long-term investors and believes that the company is well-positioned to fund the EMPEROR trial with approximately $269 million on its balance sheet. These are among the recent developments for Stoke Therapeutics in its pursuit of a potential treatment for Dravet syndrome.
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