On Friday, H.C. Wainwright maintained a positive stance on Structure Therapeutics (NASDAQ:GPCR), reiterating its Buy rating and $80.00 price target for the company’s stock, representing significant upside from the current price of $29.97. The firm’s endorsement follows Structure Therapeutics’ expansion of its drug pipeline with ACCG-2671, a once-daily small molecule amylin agonist.
According to InvestingPro data, analyst targets for GPCR range from $65 to $118, reflecting strong confidence in the company’s potential despite its current market capitalization of $1.72 billion. This development is seen as a step forward for the company’s potential mono and dual combination therapies, including GSBR-1290.
Structure Therapeutics’ efforts in the obesity treatment landscape have been highlighted by the performance of cagrilintide. This dual amylin and calcitonin receptor agonist (DACRA) has shown significant weight loss results in obesity trials, both as a standalone treatment and when used alongside semaglutide.
InvestingPro analysis indicates the company maintains a strong financial position with more cash than debt and liquid assets exceeding short-term obligations, providing runway for its development programs. The complexity of amylin receptors (AMYRs) compared to GLP-1 receptors presents a challenge in developing small molecule agonists, which in turn adds value to Structure’s pipeline.
The pursuit of developing safe and effective DACRA has been informed by recent discoveries concerning the amylin receptor complex. Insights into the molecular mechanisms of amylin and calcitonin peptides suggest that amylin might lead to better weight loss outcomes. Moreover, the binding kinetics, including a faster off-rate for DACRA, are deemed crucial for safety and regulatory considerations.
Further understanding of the amylin receptor has revealed the importance of the amylin bypass motif for the selectivity of amylin peptides for AMYRs. The two-domain model of binding known for class B1 peptide hormone GPCRs also plays a role in the activation of these receptors. Nonselective agonists based on amylin, such as cagrilintide, may benefit from greater flexibility in conformational transition, potentially leading to higher efficacy.
The reiteration of the Buy rating and $80 price target by H.C. Wainwright underscores the firm’s confidence in Structure Therapeutics’ innovative approach to tackling obesity through its advanced pipeline of therapies.
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In other recent news, Structure Therapeutics has made significant strides in developing treatments for metabolic disorders. The company’s leading oral small molecule for obesity treatment, ACCG-2671, has shown pre-clinical efficacy on par with Novo Nordisk (NYSE:NVO)’s cagrilintide, according to Piper Sandler, which confirmed an Overweight rating and a price target of $93.00. The firm is optimistic about the company’s prospects, particularly looking forward to the Phase 2b ACCESS and ACCESS II trials for GSBR-1290, with results expected by the end of 2025.
Structure Therapeutics plans to begin a Phase 1 single ascending dose/multiple ascending dose trial for ACCG-2671 at the end of 2025, with topline results expected by the end of 2026. The company is also preparing for the Phase 2b obesity trial of its lead pipeline asset, GSBR-1290, an oral GLP-1R agonist, slated to begin in late 2024. This has led to positive outlooks from BMO Capital Markets, who reiterated an Outperform rating and a price target of $100.00, and Morgan Stanley (NYSE:MS), issuing an Overweight rating.
Morgan Stanley’s analysis suggests that GSBR-1290 has a competitive profile compared to other oral diabetes and obesity treatments available on the market. The firm anticipates the next significant update for GSBR-1290 will be the Phase 2b obesity trial data, expected by the end of 2025. These are the recent developments for Structure Therapeutics as it continues to advance in its mission to develop oral treatments for metabolic and cardiopulmonary diseases.
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