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On Monday, H.C. Wainwright analyst Emily Bodnar increased the price target for Purple Biotech Ltd. (NASDAQ:PPBT) shares to $34 from the previous $33 while maintaining a Buy rating. Currently trading at $2.39, the stock sits near its 52-week low of $2.00, with InvestingPro analysis suggesting the company is undervalued. The adjustment follows Purple Biotech’s announcement of advancements in its clinical pipeline and the presentation of new biomarker data at the American Association for Cancer Research (AACR) meeting in April.
The company has updated its timeline for the Phase 2 study of NT219 and the Phase 2b study of CM24, with initiation expected in the first and second half of 2025, respectively. With a market capitalization of just $6.37 million and a healthy current ratio of 2.72, Purple Biotech maintains strong liquidity to support its clinical programs. InvestingPro data reveals the company holds more cash than debt on its balance sheet, a crucial factor for biotechnology firms advancing their pipelines. Purple Biotech shared additional biomarker data from its randomized Phase 2 study of CM24 in combination with nivolumab and Nal-IRI-5U/LV compared to Nal-IRI-5U/LV alone in second-line pancreatic ductal adenocarcinoma (PDAC) patients.
The data demonstrated statistically significant efficacy in subgroups defined by certain biomarkers, such as serum or tumor CEACAM1 levels and myeloperoxidase (MPO), which will guide patient selection in the upcoming Phase 2b study. These biomarkers are expected to help identify patients with high serum CEACAM1 and MPO, which are associated with neutrophil extracellular trap (NET) expression.
Additionally, NT219 is progressing with a new investigator-initiated Phase 2 study for recurrent/metastatic squamous cell carcinoma of the head and neck (SCCHN), in combination with pembrolizumab or cetuximab. This study, conducted in collaboration with the University of Colorado, aims to discover novel biomarkers. Preclinical presentations at AACR highlighted NT219’s potential to counteract tumor immune evasion and identified prospective biomarkers like pIGF1R, pSTAT3, and APC-loss in colorectal cancer (CRC) and SCCHN.
Purple Biotech has also recently achieved extensive patent protection for the use of NT219 in combination with anti-EGFR antibodies, bolstering its commercial prospects. Despite reporting negative EBITDA of -$7.71 million in the last twelve months, the company’s focused approach on biomarker-driven patient selection and the strengthening of its patent portfolio underpin the analyst’s reiterated Buy rating and the increased price target. Discover more insights and 8 additional ProTips about Purple Biotech on InvestingPro.
In other recent news, Purple Biotech has announced the appointment of Shai Lankry as its new Chief Financial Officer. Lankry, who brings over 20 years of financial leadership experience, will be instrumental in advancing the company’s oncology pipeline, which includes treatments such as CM24, NT219, and CAPTN-3. The recent Phase 2 study for CM24 in pancreatic ductal adenocarcinoma showed promising results across all efficacy endpoints. Additionally, NT219 has completed a Phase 1 study and is advancing to Phase 2 in collaboration with the University of Colorado. Lankry’s role will involve strategic financial planning to support the company’s growth and clinical development programs. His previous experience includes serving as a strategic fractional CFO at LS Consulting Services and as CFO at Gamida Cell (OTC:GMDAQ) Ltd. The leadership change reflects Purple Biotech’s commitment to strengthening its executive team as it explores new opportunities in the biotechnology sector.
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