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On Monday, H.C. Wainwright analyst Andrew S. Fein adjusted the price target for Acumen Pharmaceuticals , Inc. (NASDAQ:ABOS), reducing it to $11.00 from the previous $15.00. Despite this change, the firm maintained its Buy rating on the company’s stock. With the stock currently trading at $1.19, significantly below its 52-week high of $4.28, InvestingPro analysis suggests the stock is currently undervalued, though investors should note that the company is quickly burning through cash. Fein’s commentary highlighted the recent completion of enrollment for the ALTITUDE AD clinical trial, which is studying Acumen’s anti-Abeta immunotherapy, sabirnetug.
The analyst noted the current enthusiasm for sabirnetug, even with two other drugs available in the market. The anticipation for topline data from the trial is high, with expectations set for disclosure around the end of 2026. Fein pointed out that the Alzheimer’s disease (AD) therapeutic landscape could change significantly in the meantime, with potential approval of plasma biomarkers and new data from ongoing clinical trials.
Fein emphasized the importance of sabirnetug’s targeted approach, which focuses on oligomeric Abeta, considered a key toxic species in the brain associated with AD pathology. The outcome of the trial, particularly if it shows differentiation in efficacy or safety, could be a positive development for the drug’s standing in the next generation of AD treatments. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 6.46 and holds more cash than debt on its balance sheet, providing important runway for its clinical development programs.
Additionally, Acumen has completed a study involving a subcutaneous formulation of sabirnetug in healthy volunteers. The formulation showed a decent safety profile, despite a high proportion of mild injection site reactions. This development could allow for a separate trial and keep options open for the drug’s eventual adoption if it is approved.
The adjustment in Acumen’s price target was attributed to a reevaluation of the company’s operational expenditure assumptions going forward. This reassessment led to the revised target of $11, reflecting a more conservative outlook on the company’s financials in the near term. The company’s market capitalization currently stands at $72 million, with analyst targets ranging from $4 to $11. For deeper insights into Acumen’s financial health and detailed analysis, including 8 additional ProTips and comprehensive valuation metrics, check out the full research report available on InvestingPro.
In other recent news, Acumen Pharmaceuticals concluded its fiscal year 2024 with a net loss of $102.3 million, largely due to increased research and development expenses related to its Alzheimer’s treatment trials. Despite the financial loss, the company maintains a strong cash position of $231.5 million, which is expected to support operations into the first half of 2027. The company completed enrollment for its Phase II ALTITUDE AD study, involving 542 participants, which is a significant milestone in its Alzheimer’s treatment pipeline. The focus remains on the development of Sibronotug, targeting toxic A-beta oligomers, with top-line results from the study anticipated in late 2026.
In other developments, Acumen Pharmaceuticals is working on a subcutaneous formulation of Sibronotug to offer more treatment options for patients. The company is also engaged in ongoing biomarker research, which could enhance its clinical trial processes. Analyst discussions during the earnings call included inquiries about the potential for preclinical Alzheimer’s trials and the use of biomarkers in screening processes. Additionally, the company has been active in presenting its research at major Alzheimer’s conferences, highlighting its commitment to advancing treatment options in the field. These recent developments reflect Acumen’s strategic focus on innovative treatments and its efforts to position itself for future growth in the Alzheimer’s treatment market.
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