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Wednesday, H.C. Wainwright analyst adjusted the price target for Aclaris Therapeutics (NASDAQ:ACRS) stock to $16.00 from the previous $20.00, still significantly above the current trading price of $1.22. The firm maintained a Buy rating on the shares, joining other analysts whose targets range from $2 to $20. According to InvestingPro analysis, the stock appears undervalued at current levels. The price target revision follows Aclaris’ plans to initiate a Phase 2 trial of bosakitug, a drug candidate for treating moderate-to-severe atopic dermatitis (AD).
Aclaris is preparing to start a two-arm placebo-controlled Phase 2 trial with around 90 patients later this quarter. The aim is to assess bosakitug’s efficacy in a controlled environment, building on the promising results from the Phase 2a single-arm trial. InvestingPro data shows the company’s financial health score is Fair, though it’s currently burning through cash with negative EBITDA of $54 million in the last twelve months - a crucial factor for investors monitoring clinical trial progress. In the U.S.-based trial involving 22 patients with moderate-to-severe AD, bosakitug demonstrated a safety and efficacy profile suggesting it could be a leading therapy in its class.
The drug is also progressing through clinical trials in China, where Aclaris’ regional partner, Chia Tai Tianqing Pharmaceutical (TADAWUL:2070) Group, Co., Ltd. (CTTQ), is targeting severe asthma and chronic rhinosinusitis with nasal polyps (CRSwNP). CTTQ is currently advancing Phase 3 trials for these conditions and a Phase 2 trial for chronic obstructive pulmonary disease (COPD). The company is responsible for releasing and presenting the clinical trial results.
Aclaris’ focus with bosakitug remains on dermatological immuno-inflammatory indications, with respiratory indications being contingent on future partnerships outside of China. Based on the comprehensive clinical data, including CTTQ’s Phase 2 trials in Chinese patients, bosakitug is believed to have the potential to generate peak annual sales of approximately $9.8 billion. This projection is in light of the success of Dupixent (dupilumab), an anti-IL-4R monoclonal antibody, which reported sales surpassing $14 billion in 2024. For context, Aclaris currently has a market capitalization of $132 million and reported revenue of $17.8 million in the last twelve months. Get deeper insights into Aclaris’s financial health and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.
In conclusion, H.C. Wainwright reaffirmed their Buy rating on Aclaris Therapeutics while adjusting the price target to reflect the latest clinical and market developments surrounding bosakitug.
In other recent news, Aclaris Therapeutics has received clearance from the U.S. Food and Drug Administration for its Investigational New Drug application, allowing the company to advance ATI-052 into clinical trials. This bispecific monoclonal antibody targets inflammation mediators and marks a significant step in Aclaris’s development pipeline. Additionally, Scotiabank (TSX:BNS) has initiated coverage on Aclaris with a Sector Outperform rating and a price target of $15.00, indicating potential investor opportunities given the company’s current valuation. The analysts at Scotiabank emphasized Aclaris’s financial stability, noting its cash runway extends into 2028, which supports ongoing research and operations. In another development, Aclaris has appointed Dr. Jesse Hall as its new Chief Medical (TASE:BLWV) Officer, who will lead the company’s clinical strategy. Dr. Hall’s extensive experience in the industry is expected to align with Aclaris’s goals in advancing therapeutic innovations. These recent developments highlight Aclaris’s continued focus on expanding its portfolio in the immuno-inflammatory disease space.
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