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On Friday, H.C. Wainwright reaffirmed its Buy rating and $19.00 price target for Acrivon Therapeutics Inc (NASDAQ:ACRV), following the company’s annual 10-K filing disclosure. With the stock currently trading at $2.52, significantly below analyst targets ranging from $16 to $30, InvestingPro data shows strong analyst consensus with a 1.4 rating (where 1 is Strong Buy). Analyst Emily Bodnar provided insights into the company’s financial performance and future estimates, highlighting key figures from the fourth quarter and full year of 2024.
Acrivon Therapeutics reported operating expenses of $25 million in the fourth quarter of 2024, mirroring the costs from the previous quarter. The earnings per share (EPS) for the same period was calculated at ($0.60). The full year’s operating expenses reached $89.2 million, with an EPS of ($2.43). According to InvestingPro analysis, the company is quickly burning through cash, with negative free cash flow of $63.77 million in the last twelve months. These figures come after Acrivon hosted an investor webinar on March 25, which included a corporate business update.
Bodnar mentioned adjustments to the firm’s financial model, taking into account the recent earnings data and revised estimates for the upcoming year. H.C. Wainwright has reduced its operating expense projections for 2025, factoring in Acrivon’s strategic shift away from ovarian and bladder cancer indications. The new estimate for 2025 operating expenses is set at $92.2 million.
The update also noted that Acrivon ended the year 2024 with a strong cash position, having $179.5 million in cash and equivalents. This financial cushion is expected to support the company’s operations well into 2027. InvestingPro analysis reveals the company maintains a healthy current ratio of 12.75, with liquid assets significantly exceeding short-term obligations. For deeper insights into Acrivon’s financial health and 15+ additional ProTips, subscribers can access the comprehensive Pro Research Report available on the platform.
In her comments, Bodnar stated, "We are updating our model following the release of the company’s annual 10-K filing yesterday. Given this, the focus on this note is only to publish a model update reflecting 4Q24 and full year 2024 earnings and our updated estimates." She reiterated the firm’s confidence in Acrivon with a Buy rating and a $19 price target.
In other recent news, Acrivon Therapeutics provided an update on their Phase 2 study of ACR-368, revealing an objective response rate of 35% among patients with endometrial cancer who tested positive for the OncoSignature biomarker. This update led H.C. Wainwright to adjust its price target for Acrivon from $22.00 to $19.00, while maintaining a Buy rating. Cantor Fitzgerald also reiterated its Overweight rating on Acrivon, noting the strategic shift to focus on endometrial cancer and the potential for an accelerated approval pathway. JMP Securities maintained its Market Outperform rating and $17.00 price target, emphasizing the promising profile of ACR-368 in metastatic endometrial cancer.
Additionally, Acrivon announced the appointment of Adam Levy, Ph.D., M.B.A., as the new Chief Financial Officer, effective April 1, 2025. Dr. Levy, who has been with the company since July 2023, will succeed Rasmus Holm-Jorgensen, who is stepping down for personal reasons. Dr. Levy brings over 25 years of experience in finance and investor relations within the biopharmaceutical industry. His previous roles include positions at Zentalis Pharmaceuticals, Turning Point Therapeutics (NASDAQ:TPTX), and Gilead Sciences (NASDAQ:GILD).
These developments underscore Acrivon’s focus on advancing its clinical-stage assets, particularly ACR-368 and ACR-2316, supported by its AP3 platform. Investors and analysts are closely monitoring these updates, as Acrivon continues to progress through its clinical trials and strategic initiatives.
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