Nucor earnings beat by $0.08, revenue fell short of estimates
On Tuesday, H.C. Wainwright analyst Andrew Fein adjusted the price target for Unity Biotechnology Inc (NASDAQ:UBX) to $4.00, a significant decrease from the previous $8.00, while reaffirming the firm’s Buy rating on the stock. The revision follows the results from the Phase 2B ASPIRE study of Unity’s drug candidate foselutoclax (UBX1325) for treating diabetic macular edema (DME) patients. The stock, which InvestingPro data shows has declined over 25% in the past week, maintains a strong analyst consensus with price targets ranging from $4.00 to $6.00.
The ASPIRE study did not meet the non-inferiority criteria in the primary analysis at the average of weeks 20 and 24. Despite this, the analyst noted several positive outcomes from the trial. Unity’s UBX1325 demonstrated non-inferiority to the comparator drug aflibercept at nine out of ten time points throughout the 36-week period, suggesting a novel approach to retinal disease treatment. With a market capitalization of just $21.93 million and a current ratio of 2.62, InvestingPro analysis indicates the company maintains healthy liquidity to support its ongoing research initiatives.
Patients treated with UBX1325 showed a gain of 5.2 letters on the visual acuity chart at week 24, which slightly increased to 5.5 letters at week 36. This is a key measure of effectiveness, as the primary endpoint of the study was the mean change from baseline in best-corrected visual acuity (BCVA) at weeks 20 and 24, continued out to week 36.
The analysis also revealed that 23.1% of patients in the UBX1325 group had previously been treated with faricimab compared to only 7.7% in the aflibercept group within the last 190 days. This could indicate that the UBX1325 group included patients with more severe and less managed disease, potentially impacting the drug’s observed effect.
Notably, approximately 40% of patients receiving UBX1325 did not require additional anti-VEGF injections through week 36, which is considered significant given these patients had a history of receiving at least three anti-VEGF injections in the prior six months. Furthermore, UBX1325 demonstrated superior performance over aflibercept in patients with less aggressive disease, positioning it as a potential second-line treatment option after standard anti-VEGF therapies, focusing on vision improvement rather than further retinal drying.
H.C. Wainwright’s revised price target reflects both the setbacks and the potential of UBX1325 in the treatment of DME. The firm remains optimistic about the future development of novel senolytic therapies for DME, as suggested by the merits displayed in the recent study. Unity Biotechnology’s next steps for foselutoclax are anticipated as the company continues to explore the drug’s potential in this therapeutic area. According to InvestingPro, Unity Biotechnology is currently undervalued and investors can look forward to the company’s next earnings report on April 3, 2025. InvestingPro subscribers have access to over 10 additional key insights and metrics about Unity Biotechnology, helping them make more informed investment decisions.
In other recent news, Unity Biotechnology has been at the forefront of developments in the treatment of diabetic macular edema (DME) with its lead candidate, UBX1325. The company announced positive topline results from its Phase 2b ASPIRE clinical trial, revealing that UBX1325 was generally non-inferior to aflibercept, a standard treatment, in improving vision. Despite not meeting the primary endpoint at the 20-week mark, the drug showed promising results at other time points, with gains in visual acuity noted at 24 and 36 weeks. Chardan Capital Markets initiated coverage of Unity Biotechnology with a Buy rating, highlighting the potential of UBX1325’s novel mechanism to address cellular senescence in DME treatment. Mizuho (NYSE:MFG) Securities also maintained its Outperform rating on the company, reflecting optimism about the ongoing clinical trials and future data releases. Furthermore, Unity Biotechnology appointed Federico Grossi, M.D., Ph.D., as its new chief medical officer, bringing his extensive experience in clinical development and regulatory strategy to the team. Piper Sandler included Unity Biotechnology in its list of companies with key Phase 2b readouts expected in 2025, indicating significant upcoming milestones. These developments underscore Unity Biotechnology’s ongoing efforts to advance its therapeutic portfolio and address unmet needs in age-related diseases.
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