H.C. Wainwright maintains $4 target on Unity Biotech stock

Published 23/04/2025, 12:26
H.C. Wainwright maintains $4 target on Unity Biotech stock

On Wednesday, H.C. Wainwright reaffirmed its Buy rating and $4.00 price target for Unity Biotechnology Inc (NASDAQ:UBX), expressing confidence in the company’s potential ahead of upcoming clinical trial results. Trading at $0.98, the stock sits well below analysts’ price targets ranging from $4.00 to $6.00. According to InvestingPro data, the stock currently appears undervalued based on its Fair Value analysis. Analysts at the firm anticipate that the full 36-week data from the Phase 2b ASPIRE trial, expected in the second quarter of 2025, could demonstrate the efficacy of Unity’s drug candidate, UBX1325, in treating diabetic macular edema (DME) patients.

Unity Biotechnology’s UBX1325 is being evaluated in a head-to-head trial against aflibercept, a current standard treatment for DME. Despite the drug not meeting the primary endpoint for non-inferiority at weeks 20 and 24, analysts noted that UBX1325 achieved non-inferiority at nine out of ten time points through 36 weeks, suggesting a novel approach in retinal disease treatment. The company maintains a healthy liquidity position with a current ratio of 2.62, while operating with moderate debt levels, according to InvestingPro analysis.

The ASPIRE study’s primary endpoint is the mean change from baseline in best-corrected visual acuity (BCVA) at the 20 and 24-week average, with follow-up extending to 36 weeks. Data has shown that patients treated with UBX1325 experienced an improvement of 5.2 letters at week 24 and 5.5 letters at week 36, indicating consistent vision improvement.

Furthermore, approximately 40% of patients treated with UBX1325 did not require additional anti-VEGF injections through week 36, a significant finding given that these patients had previously required at least three such injections in the prior six months. This response rate supports the potential of UBX1325’s novel mechanism in retinal disease, according to H.C. Wainwright.

The firm’s analysts remain optimistic as the full 36-week data approaches, suggesting that UBX1325 could offer a consistent vision improvement for DME patients who have an inadequate response to standard therapy. With the anticipation of these longer-term results, H.C. Wainwright reiterates its Buy rating for Unity Biotechnology’s stock. Investors should note that Unity Biotechnology’s next earnings report is scheduled for May 5, 2025. InvestingPro subscribers have access to additional insights, including 8 more ProTips and comprehensive financial metrics that can help evaluate the company’s potential ahead of these important catalysts.

In other recent news, Unity Biotechnology announced the results of its Phase 2b ASPIRE clinical trial for UBX1325, a treatment for diabetic macular edema (DME). The trial aimed to establish that UBX1325 was not inferior to aflibercept, a standard treatment, in improving vision. Although the primary endpoint was not met at weeks 20 and 24, UBX1325 demonstrated non-inferiority at nine out of ten time points over 36 weeks. Patients treated with UBX1325 showed an average visual acuity improvement of 5.2 letters at week 24 and 5.5 letters at week 36. H.C. Wainwright adjusted its price target for Unity Biotechnology to $4.00, down from $8.00, but maintained a Buy rating, citing the potential of UBX1325. Mizuho (NYSE:MFG) Securities reiterated its Outperform rating with a $6.00 price target, noting the trial’s insights into UBX1325’s efficacy over an extended period. The full 36-week data is expected soon, which will inform the design of a potential pivotal study. Unity Biotechnology’s CEO expressed optimism about advancing UBX1325 to late-stage studies, highlighting its potential benefits for patients not responding adequately to existing therapies.

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