H.C. Wainwright lifts Adagene stock target to $8 on ASCO data

On Monday, H.C. Wainwright analyst Arthur He increased the price target on Adagene Inc (NASDAQ:ADAG) shares to $8.00 from the previous $5.00, while retaining a Buy rating for the stock. Currently trading at $1.93, with a market capitalization of $85.4 million, Adagene has seen its shares decline over 51% in the past year. The revision follows Adagene's recent presentation of encouraging results from its Phase 1/2 study of ADG126. InvestingPro data shows analyst targets ranging from $3.50 to $19.06, suggesting significant potential upside from current levels. The data was shared at the 2025 American Society of Clinical Oncology Gastrointestinal Cancers Symposium (ASCO-GI) on January 25.

Adagene's ADG126 is a human IgG1, a masked anti-CTLA-4 monoclonal antibody, developed using the company's proprietary SAFEbody platform. The therapy is currently being evaluated in combination with pembrolizumab, also known as Keytruda, which is an anti-PD-1 antibody marketed by Merck (NSE:PROR). The focus of the study is on patients with metastatic microsatellite stable colorectal cancer (MSS-CRC) who do not have liver metastases (NLM).

The analyst's comments highlighted the significance of the ASCO-GI data, suggesting it reinforces the therapeutic potential of ADG126 in treating MSS-CRC. While the company maintains a strong balance sheet with more cash than debt and a current ratio of 2.5, InvestingPro analysis indicates the company is quickly burning through cash. The positive results from the ongoing study have contributed to the analyst's decision to maintain a Buy rating and to raise the 12-month price target for Adagene.

Adagene also hosted a virtual KOL (Key Opinion Leader) event in conjunction with the symposium, which provided further insight into the study and its findings. The company's research and development efforts are part of a broader trend in the biotechnology industry to innovate and enhance cancer treatments.

The new price target of $8 per share reflects the analyst's increased confidence in the potential success of ADG126 as a valuable addition to the treatment landscape for MSS-CRC. With an overall Financial Health Score rated as "Weak" by InvestingPro, and 11 additional ProTips available for subscribers, investors and stakeholders in the biotech sector will likely follow Adagene's progress closely as the company continues to develop and assess its treatment options.

In other recent news, Adagene Inc. reported positive clinical data from a trial of its novel drug, ADG126, for treating microsatellite stable colorectal cancer (MSS CRC). The trial reported a 33% overall response rate in a specific patient subset, excluding those with liver and peritoneum metastases. Despite a downgrade from Jefferies, H.C. Wainwright analysts maintain a Buy rating on Adagene, reinforcing confidence in ADG126's potential.

Furthermore, Adagene has presented new clinical data at the ASCO-GI symposium, highlighting results from a study combining ADG126 with Merck's KEYTRUDA® in MSS CRC. The company plans to extend its trial to a broader patient population, including those with liver metastases, and to assess the drug's performance in combination with standard care treatments.

Adagene's commitment to innovation in cancer immunotherapies is supported by its proprietary Dynamic Precision Library platform. The company continues to collaborate with global partners to advance its pipeline of novel immunotherapy programs. As the clinical data matures throughout 2025, further endpoints, including time to event, will be reported, providing additional insight into the treatment's efficacy and durability. The company's next earnings report is expected on March 27, 2025.

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