Bullish indicating open at $55-$60, IPO prices at $37
On Wednesday, H.C. Wainwright reaffirmed its Buy rating and $7.00 price target for Atossa Genetics (NASDAQ:ATOS) shares, representing significant upside potential from the current price of $0.72. The firm’s analyst highlighted the company’s recent emphasis on Z-endoxifen clinical development for metastatic breast cancer (mBC) as a strategic move. According to InvestingPro data, analyst consensus remains bullish, with price targets ranging from $4.00 to $7.00. Atossa Genetics announced its fourth-quarter and full-year financial results for 2024 on March 25, 2025, and provided updates on corporate strategies, including the prioritization of Z-endoxifen.
Z-endoxifen has shown promise in previous trials involving patients with mBC who had previous treatments with aromatase inhibitors, fulvestrant, tamoxifen, or were naïve to CDK4/6 inhibitors. The company believes that mBC represents a strategically advantageous path due to the possibility of a smaller Phase 3 program and a more direct route to FDA approval. InvestingPro analysis reveals that while the company holds more cash than debt, it’s currently burning through cash rapidly - one of several key insights available in the comprehensive Pro Research Report covering this $93.5 million market cap company.
The decision to focus on mBC also lays the groundwork for potential expansion into earlier-stage diseases, where Z-endoxifen has already demonstrated efficacy and safety in the I-Spy-2, KARISMA, and EVANGELINE trials. These results suggest that Z-endoxifen may outperform tamoxifen in similar settings.
Despite the competitive landscape for mBC treatments, Z-endoxifen could stand out, especially if it proves effective in ESR1 wild-type ER+/HER2- mBC, a category where oral SERDs have so far been ineffective. With a strong current ratio of 14.99x and liquid assets exceeding short-term obligations, the company appears well-positioned to fund its development programs. A Phase 1 study conducted before the approval of CDK4/6 inhibitors showed that Z-endoxifen achieved a clinical benefit rate (CBR) of 26% in previously treated patients, with a median progression-free survival (PFS) of 3.7 months, and some patients experiencing over 12 months of PFS.
Atossa Genetics is on track to initiate a new trial in 2025 and is currently in the planning phase, seeking insights from key opinion leaders to navigate the complexities of the mBC treatment landscape before engaging with the FDA. The reiterated Buy rating and price target reflect the analyst’s continued confidence in the potential of Z-endoxifen and Atossa Genetics’ strategic direction, despite the stock’s challenging performance, having declined nearly 48% over the past six months. Get deeper insights into Atossa’s financial health, market performance, and growth potential with InvestingPro, which offers exclusive access to over 30 key metrics and professional analysis.
In other recent news, Atossa Genetics Inc . reported its Q4 2024 earnings, showing an earnings per share (EPS) of -0.04, which exceeded the forecasted -0.065. The company also managed to reduce its net loss to $25.5 million from $30.1 million the previous year, thanks to decreased operating expenses and a focus on its lead breast cancer treatment program, Zendoxifen. Operating expenses for 2024 were $27.6 million, down from $31.4 million in 2023, with research and development expenses reduced by $3.2 million. Atossa’s financial position remains strong with $71.1 million in cash and cash equivalents at year-end. The company plans to prioritize the development of Zendoxifen, with consultations with the FDA expected in the coming months. Atossa’s strategic focus on disciplined spending and clinical progress has been highlighted by the management, as they aim to meet clinical milestones. Additionally, Atossa is exploring global expansion plans for Zendoxifen, starting with the U.S. market.
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