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On Wednesday, H.C. Wainwright analyst Ed Arce adjusted the price target for Aligos Therapeutics Inc. (NASDAQ: ALGS) to $70.00, a decrease from the previous $75.00, while continuing to endorse the stock with a Buy rating. According to InvestingPro data, analyst targets for ALGS range from $60 to $175, with the stock currently trading at $10.51. The company’s shares have experienced significant pressure, down over 73% year-to-date. The revision follows the presentation of promising data from a small sample of the ongoing Phase 1 study of ALG-000184, a capsid assembly modulator (CAM-E) being developed for chronic Hepatitis B (CHB) treatment. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 2.86, though it’s currently burning through cash with negative free cash flow of $80.87 million.
Aligos Therapeutics showcased its early findings at the AASLD The Liver Meeting (TLM) in 2024, which detailed the effects of ALG-000184 300 mg monotherapy in suppressing HBV DNA. Looking ahead to 2025, Arce highlighted three significant upcoming events for Aligos. These include the 96-week data presentation from the Phase 1 study at The EASL Congress, scheduled for May 7-10 in Amsterdam, the launch of a new Phase 2 study for ALG-000184, and the updated data presentation of ALG-000184 as part of a combination therapy at the AASLD TLM, set to take place from November 7-11 in Washington, DC.
The interim dataset presented at TLM 2024 focused on CHB patients who were either HBeAg positive or negative. The results demonstrated that daily oral doses of ALG-000184 led to sustained suppression of HBV DNA. This data serves as a foundation for the company’s continued research and development efforts.
Arce’s report and the adjusted price target reflect the analyst’s anticipation of Aligos Therapeutics’ progress in the coming year. The company’s research into ALG-000184 and its potential as a treatment for CHB patients is closely watched by investors and industry experts.
As Aligos Therapeutics prepares for these milestones, the market will likely follow the developments closely, considering the impact these studies could have on the company’s future and the potential benefits for patients with chronic Hepatitis B. With a market capitalization of just $39 million and InvestingPro analysis suggesting the stock is currently undervalued, investors seeking detailed financial insights and additional ProTips can explore the comprehensive analysis available on the platform.
In other recent news, Aligos Therapeutics has announced a private placement agreement that is expected to generate approximately $105 million. This funding is anticipated to extend the company’s cash runway into the second half of 2026. The transaction involves the sale of over 2 million shares of common stock, including both voting and non-voting shares, alongside pre-funded and accompanying warrants. A life sciences investment firm leads the private placement with contributions from various new and existing institutional investors. The net proceeds will be used to advance ALG-000184 into a Phase 2 clinical study for chronic hepatitis B virus infection and for other general corporate purposes. The private placement includes 1,427,000 shares of voting common stock and 676,307 shares of non-voting common stock, as well as pre-funded warrants for up to 1,922,511 shares of voting common stock. Accompanying warrants for up to 2,012,909 shares of voting common stock are also part of the deal. Jefferies and Piper Sandler are serving as placement agents for the transaction, with H.C. Wainwright & Co. acting as financial advisor. The closing of the private placement is scheduled for February 13, 2025, contingent on customary closing conditions.
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