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On Friday, H.C. Wainwright analysts maintained a positive stance on Silence Therapeutics (NASDAQ:SLN), reiterating both their Buy rating and $75.00 price target on the company’s shares. Currently trading at $4.74, the stock has seen significant pressure, falling over 81% in the past year. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculation. The firm’s analysts highlighted the strategic decision by Silence Therapeutics to delay the initiation of the Phase 3 cardiovascular outcomes trial (CVOT) for its drug candidate zerlasiran until a partnership is secured. This move was described as a prudent approach to capital allocation.
Silence Therapeutics’ zerlasiran, which is being developed to address Lp(a), a lipid marker for cardiovascular disease, has received regulatory validation from the FDA, EMA, and PMDA for its pivotal trial design. This endorsement is seen as a significant milestone for the drug’s transformative potential. Additionally, divesiran, aimed at treating polycythemia vera (PV), is identified as a near-term value driver for the company. The completion of a Phase 1 follow-up study and the expectation to fully enroll in Phase 2 by the end of 2025 have been noted as key developments.
The company’s cash reserves are reportedly sufficient to fund operations into 2027. InvestingPro data shows the company holds more cash than debt and maintains a strong current ratio of 11.14, though it is quickly burning through cash. This financial position is expected to support the advancement of Silence Therapeutics’ RNAi pipeline, which focuses on rare diseases. With 10+ additional ProTips available, investors can gain deeper insights into SLN’s financial health through InvestingPro’s comprehensive analysis. Among the pipeline is SLN548, a complement factor B-targeting siRNA slated to enter Phase 1 in the second half of 2025.
Looking ahead, analysts at H.C. Wainwright have identified several potential catalysts that could propel Silence Therapeutics’ stock toward their $75 price target. These include a possible partnership announcement for zerlasiran, which would facilitate the commencement of Phase 3 trials and potentially unlock its blockbuster potential. Furthermore, the presentation of Phase 1 data for divesiran at medical meetings in 2025 could further validate its efficacy in eliminating the need for phlebotomy in PV patients. The progression of SLN548 into clinical development is also anticipated to expand the company’s pipeline beyond liver-targeted siRNAs.
In conclusion, with its strategic focus, solid financial footing, and advancing pipeline, Silence Therapeutics is positioned for significant growth, according to H.C. Wainwright analysts. The reiterated $75 price target and Buy rating reflect the firm’s confidence in the company’s prospects. For a complete understanding of SLN’s potential, investors can access the detailed InvestingPro Research Report, part of the platform’s coverage of 1,400+ US stocks, offering comprehensive analysis and actionable insights.
In other recent news, Silence Therapeutics reported a significant increase in revenue for 2024, reaching $43.3 million compared to $31.6 million in 2023. This growth was largely driven by strategic collaborations with AstraZeneca (NASDAQ:AZN) and Hanseo Pharma. Despite the positive revenue results, the company disclosed a net loss of $45.3 million, which is an improvement from the $54.2 million net loss reported in the previous year. Additionally, Jefferies adjusted its price target for Silence Therapeutics to $30, down from $31, while maintaining a Buy rating. Meanwhile, Morgan Stanley (NYSE:MS) also revised its price target for the company, reducing it to $45 from $49, but kept an Overweight rating. The adjustments reflect changes in the financial model due to the company’s transition to reporting in U.S. dollars and updates in the probability of success for its product, zerlasrian. Silence Therapeutics has also announced plans to delay the phase 3 trial of zerlasiran without a partnership, extending its cash runway into 2027 with $147.3 million projected in cash reserves by the end of 2024. The company is shifting focus to its second asset, divesiran, targeting polycythemia vera, with additional data expected in 2025.
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