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On Monday, H.C. Wainwright reaffirmed a Buy rating on shares of 4D Molecular Therapeutics (NASDAQ:FDMT) with a $36.00 price target. The stock, currently trading at $5.97, has seen significant volatility, with analyst targets ranging from $6 to $72. According to InvestingPro data, FDMT currently appears undervalued based on its Fair Value analysis. The firm’s analyst highlighted the recent presentation of 52-week data from the Phase 2b PRISM trial for 4D-150, an intravitreal gene therapy candidate aimed at treating wet age-related macular degeneration (AMD (NASDAQ:AMD)). With a market capitalization of $276 million, FDMT maintains a strong financial position, holding more cash than debt on its balance sheet.
The data, unveiled over the weekend at the Angiogenesis, Exudation, and Degeneration 2025 conference, showed positive results, particularly for a subgroup of recently diagnosed patients. This subgroup demonstrated an increased rate of injection reduction and freedom, which is significant given that patients with severe cases may require frequent standard anti-VEGF injections.
The analyst underscored the potential impact of these findings on the upcoming Phase 3 4FRONT program, which is expected to start in the first quarter of 2025. The program will include two trials, 4FRONT-1 and 4FRONT-2, targeting treatment-naïve and a mix of treatment-naïve and previously treated wet AMD patients diagnosed within the past six months. The results from the PRISM trial suggest that 4D-150 could offer differentiated efficacy, durability, and safety through a single intravitreal injection compared to the current standard of care, aflibercept 2mg every eight weeks.
The analyst expressed optimism about the upcoming pivotal trials, noting the meaningful clinical benefit demonstrated by the ability to maintain injection freedom for more than half of the broader disease patient population at the 52-week mark. This outcome could represent a significant improvement in the quality of life for patients who might otherwise require more frequent treatments.
With the Phase 2b PRISM trial data supporting the initiation of the pivotal 4FRONT trials, H.C. Wainwright reiterated its positive stance on 4D Molecular Therapeutics, maintaining the $36 price target for the company’s stock. InvestingPro subscribers have access to 12 additional key insights about FDMT, including detailed financial health metrics and comprehensive analysis through the Pro Research Report, which transforms complex Wall Street data into actionable intelligence for smarter investing decisions.
In other recent news, 4D Molecular Therapeutics has been the subject of analyst revisions and significant developments. Leerink Partners revised its price target for the company, lowering it to $27 from $31, while maintaining an Outperform rating. This followed the company’s strategic shift in its pipeline, prioritizing its 4D-150 program for wet age-related macular degeneration (wAMD) and diabetic macular edema (DME), and 4D-710 for cystic fibrosis (CF).
Meanwhile, BMO Capital Markets downgraded 4D Molecular Therapeutics from Outperform to Market Perform, setting a price target of $15.00. This decision was based on concerns over the potential market reach and durability of 4D-150, the company’s leading drug candidate for eye diseases.
In addition, Morgan Stanley (NYSE:MS) initiated coverage on 4D Molecular Therapeutics, assigning the stock an Underweight rating and establishing a price target of $8.00. The firm’s assessment was based on comparative risk-adjusted return potential with other stocks in its coverage universe.
The company also announced a strategic refocusing of its development pipeline, prioritizing two product candidates, 4D-150 and 4D-710. This decision has extended the company’s cash runway into 2028, with $506 million in unaudited cash, cash equivalents, and marketable securities as of December 31, 2024.
In a financial maneuver, 4D Molecular Therapeutics engaged in a securities exchange agreement with RA Capital Healthcare Fund, L.P., involving a pre-funded warrant to acquire an equivalent number of shares. This move is part of the company’s ongoing financial strategy to manage its capital structure and shareholder relations.
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