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On Thursday, H.C. Wainwright analyst Andrew Fein adjusted the price target for AC Immune SA (NASDAQ:ACIU) stock, reducing it to $12 from the previous $16 while sustaining a Buy rating on the company’s shares. Currently trading at $1.73, with a market capitalization of $171 million, the stock has experienced a significant decline of over 42% in the past six months. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics. The revision follows the interim 26-week data from AC Immune’s Phase 2 VacSYn trial for its ACI-7104.056 vaccine, which indicated a promising immune response in patients.
The data revealed that the vaccine is safe and, after four immunizations, elicited an immune response nearly 20 times higher than that of the placebo. This suggests that repeated immunization can boost antibodies and amplify the response. While the clinical results are promising, InvestingPro data shows that analysts expect sales to decline in the current year, though the company maintains a strong balance sheet with more cash than debt. Notably, a significant increase in anti-alpha-synuclein antibodies was observed after just two immunizations at Week 6, and this continued to rise after three immunizations.
Fein highlighted two key findings from a prior study published in Lancet Neurology that may support the vaccine’s continued development. The first is the target engagement data, which showed a reduction of nearly 50% in pathological alpha-synuclein in cerebrospinal fluid (CSF). The second is a positive correlation between the Unified Parkinson’s Disease Rating Scale (UPDRS) III scores and changes in oligo-alpha-synuclein, suggesting potential benefits in motor function. However, this result stems from a small patient group and lacks a placebo comparison, indicating the need for further validation in Phase 2 trials.
The company also plans to use the immuno-infrared sensor (iRS) platform to quantify CSF alpha-synuclein levels, which has demonstrated high sensitivity and specificity, comparable to the SAA assay for key Parkinson’s disease biomarkers. Fein expressed that a significant reduction in pathological alpha-synuclein could be encouraging for the program’s future and assist in determining dosing for pivotal trials.
The decision to lower the price target also reflects an updated discount rate across H.C. Wainwright’s coverage, aiming to better represent the current macro environment for small to mid-cap biotech companies. Despite current challenges, the analyst consensus remains highly bullish with a 1.25 rating (where 1 is Strong Buy), with price targets ranging from $7.71 to $17.06. InvestingPro subscribers can access additional insights, including 7 more ProTips and comprehensive financial health metrics that help evaluate biotech investment opportunities.
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