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On Tuesday, H.C. Wainwright reaffirmed a Buy rating and a $50.00 price target for Tourmaline Bio (NASDAQ:TRML), following the release of positive results from the Phase 2 TRANQUILITY trial. According to InvestingPro data, analysts maintain a strong Buy consensus with price targets ranging from $35 to $70, suggesting significant upside potential from the current trading price of $15.32. The study evaluated the efficacy of pacibekitug in patients with elevated high-sensitivity C-reactive protein (hs-CRP) and chronic kidney disease (CKD).
The trial’s primary endpoint was the median time-averaged percent change in hs-CRP through Day 90. The findings revealed that all pacibekitug dosing groups experienced significant reductions in hs-CRP levels. Specifically, the 25 mg quarterly group saw a 75% reduction, the 50 mg quarterly group an 86% reduction, and the 15 mg monthly group an 85% reduction, in contrast to the placebo group’s 15% reduction, with a p-value of less than 0.0001.
These outcomes are notable in comparison to a similar drug, ziltivekimab, developed by Novo Nordisk (NYSE:NVO), which demonstrated 88% and 92% reductions in hs-CRP at Week 12 with 15 mg and 30 mg monthly dosing, respectively. Tourmaline Bio maintains a strong financial position, with InvestingPro analysis showing more cash than debt on its balance sheet and a robust current ratio of 33.87x, providing ample resources for continued drug development.
Safety profiles were also encouraging, as the incidence rates of adverse events and serious adverse events in the pacibekitug groups were comparable to those in the placebo group. Additionally, a significant number of participants in the treatment arms achieved time-averaged hs-CRP levels below 2 mg/L through Day 90, a threshold associated with residual cardiovascular disease (CVD) risk. The rates for this marker were 81%, 80%, and 88% in the pacibekitug arms, versus 26% for the placebo group, again with a p-value of less than 0.0001.
Based on the TRANQUILITY trial results, H.C. Wainwright views the data as supportive for advancing pacibekitug into a pivotal program for atherosclerotic cardiovascular disease (ASCVD). Tourmaline Bio plans to discuss these results with the FDA in the second half of 2025. The continued endorsement of a Buy rating and a $50 price target by H.C. Wainwright reflects confidence in the drug’s potential and Tourmaline Bio’s prospects. With a market capitalization of approximately $394 million and an overall Financial Health score rated as "GOOD" by InvestingPro, which offers 8 additional key insights about the company’s financial position and growth prospects, investors may find the current valuation compelling.
In other recent news, Tourmaline Bio announced positive topline results from its Phase 2 TRANQUILITY trial, which evaluated pacibekitug in patients with elevated high-sensitivity C-reactive protein (hs-CRP) and chronic kidney disease. The trial demonstrated significant reductions in hs-CRP levels, a biomarker linked to cardiovascular risk, with the 50 mg quarterly dose achieving more than an 85% reduction from baseline. Safety data indicated that the incidence of adverse events was comparable to the placebo group, suggesting a favorable safety profile. Despite these promising results, the company’s stock experienced a decline, possibly reflecting investor concerns about the drug’s commercial viability or regulatory prospects.
Analysts have weighed in on these developments, with Leerink Partners raising Tourmaline Bio’s price target from $49 to $54, maintaining an Outperform rating due to the promising outcomes of the TRANQUILITY study. Truist Securities also sustained a Buy rating with a $63 price target, noting the drug’s potential for competitive high-sensitivity C-reactive protein reduction with quarterly dosing. BMO Capital Markets retained its Outperform rating with a $35 price target, suggesting that the market’s reaction to the trial data was excessive and highlighting pacibekitug’s potential as a best-in-class option. Tourmaline Bio plans to advance pacibekitug’s development in cardiovascular inflammation and assess Phase 3 trial designs, with further updates expected in 2025.
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