Intel stock spikes after report of possible US government stake
On Tuesday, H.C. Wainwright reaffirmed its Buy rating on shares of Moleculin Biotech (NASDAQ:MBRX), with a steady price target of $8.00, representing significant upside from the current price of $1.06. The firm’s analyst highlighted the recent financial results and business outlook from Moleculin Biotech, particularly emphasizing the potential of the company’s pivotal Phase 3 trial, MIRACLE, which is set to evaluate Annamycin in treating acute myeloid leukemia (AML). According to InvestingPro data, analyst targets for MBRX range from $8.00 to $20.00, reflecting strong confidence in the company’s potential despite recent market volatility.
Moleculin Biotech announced on March 24 its fourth-quarter financials for 2024, alongside the progress of its MIRACLE study (MB-108). InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, though it’s currently experiencing rapid cash burn with an EBITDA of -$26.52M in the last twelve months. This pivotal trial is designed to assess the efficacy of Annamycin in combination with high-dose cytarabine (HiDAC) versus HiDAC plus placebo for AML patients who have not responded to initial therapy or have relapsed. Annamycin is noted for its differentiation from other anthracyclines, such as doxorubicin, due to its lack of cumulative cardiotoxicity, which typically restricts the long-term use of this class of drugs.
The company is poised to open clinical sites in Europe and the Middle East, with the goal of treating the first subject in the first quarter of 2025. Later in the year, additional sites are expected to open in the United States. Out of approximately 70 targeted locations, 25 clinical sites have already been selected, marking significant progress for the company’s clinical development plans.
The analyst from H.C. Wainwright expressed confidence in the MIRACLE study design, stating that it strategically positions Moleculin Biotech to advance rapidly in its clinical trials. The progress made in site selection and the planned treatment of the first subject are seen as key milestones that could drive the company’s value in the coming year. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, despite facing challenges with a market cap of just $3.18M and significant price volatility over the past year. The reiteration of the Buy rating and the $8 price target reflects the firm’s positive outlook on the company’s potential to achieve these milestones. Investors can access 12 additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research report.
In other recent news, Moleculin Biotech Inc has announced key updates regarding its financial status and clinical trial progress. The company reported a cash balance of $13 million, which is expected to sustain operations until the third quarter of 2025. Moleculin has successfully reduced its operating expenses by $3 million in 2024, as it focuses on advancing its clinical trials, particularly the Phase 3 trial for Anamycin, aimed at treating relapsed/refractory acute myeloid leukemia (AML). The estimated cost for this trial is between $60 million and $70 million, highlighting the financial challenges the company faces despite its promising developments.
Additionally, Moleculin plans to enroll the first patient in its MIRACLE trial in the first quarter of 2025, with the unblinding of data anticipated by year-end. The company projects a cash burn of $5 million per quarter in 2025, increasing to $7-8 million in 2026. The company has received regulatory and ethics approval in its first European country for the MIRACLE trial, with patient screening already underway. Analyst notes from Roth Capital Partners (WA:CPAP) and Maxim Group indicate a cautious yet optimistic outlook, with discussions on potential early approval pathways and future market opportunities for Anamycin, especially considering its non-cardiotoxic properties. These developments are crucial as Moleculin navigates the complexities of clinical trials and financial management in the biotech sector.
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