Craig-Hallum sets $21 target on Actuate Therapeutics stock

Tuesday

Craig-Hallum has initiated coverage on Actuate Therapeutics (NASDAQ:ACTU) with a Buy rating and a price target of $21.00. The firm’s analysts are optimistic about the company’s lead drug candidate, elraglusib, and its potential to improve survival outcomes in first-line metastatic pancreatic ductal adenocarcinoma (mPDAC), an area with significant unmet medical needs.

The analysts’ confidence is bolstered by interim data from a randomized Phase II study of elraglusib in combination with the standard of care Gemcitabine and Nab-Paclitaxel (GnP) in treating 1L mPDAC. They anticipate that the data will continue to show a meaningful difference in median overall survival (mOS) when compared to GnP alone.

The coverage initiation follows a detailed Kaplan-Meier analysis of the interim Phase II 1L mPDAC data conducted by Craig-Hallum. This analysis has given the firm’s analysts a positive outlook on the upcoming topline readout, which is expected to occur in April. They believe this event has the potential to significantly increase the company’s value.

Moreover, the analysts note that Actuate Therapeutics’ financial position, with $8.6 million in cash at the end of the previous year, could be strengthened by the positive developments in their lead drug candidate’s clinical trials. InvestingPro analysis shows an excellent financial health score of 3.98, despite current profitability challenges. Subscribers can access 5 additional key ProTips about ACTU’s financial position.

In summary, Craig-Hallum’s initiation of coverage with a Buy rating reflects a strong belief in Actuate Therapeutics’ prospects. The analysts are particularly encouraged by the potential of elraglusib to become a first-in-class GSK3ß inhibitor, offering a new treatment option for patients with mPDAC and providing a considerable opportunity for revenue growth for the company. The stock has shown strong momentum with a 9.4% return over the past six months, though InvestingPro analysis suggests the current price exceeds its Fair Value.

In other recent news, Actuate Therapeutics has completed patient enrollment for a Phase 2 trial involving its investigational drug, elraglusib, in combination with FOLFIRINOX and losartan for untreated metastatic pancreatic ductal adenocarcinoma. This trial, led by Dr. Colin Weekes at Massachusetts General Hospital, aims to assess the safety and effectiveness of the drug combination, with early data indicating increased clinical activity. Interim results for elraglusib, when paired with gemcitabine/nab-paclitaxel, have shown significant improvements in survival rates, with final results anticipated in 2026. Additionally, Actuate has announced its first Annual Meeting of Stockholders, scheduled to be held virtually on May 22, 2025. Stockholders eligible to vote will be determined based on a record date of March 25, 2025. The company has outlined procedures for stockholders wishing to submit proposals or nominate directors, with a deadline set for February 21, 2025. These developments reflect Actuate’s ongoing efforts in advancing cancer treatment and engaging with its stockholders.

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