H.C. Wainwright maintains Buy on Aclaris stock, $16 target

On Monday, H.C. Wainwright reaffirmed its Buy rating on Aclaris Therapeutics (NASDAQ:ACRS), with a consistent price target of $16.00, representing significant upside from the current price of $1.53. According to InvestingPro data, analyst targets for ACRS range from $2 to $16, with the company maintaining a strong cash position relative to its debt obligations. The firm’s confidence is rooted in the strong performance of Aclaris’s drug candidate, bosakitug, in both preclinical and clinical studies for atopic dermatitis (AD). Notably, the Phase 2a single-arm trial results showed that 94% of participants reached EASI-75 scores, indicating a significant reduction in the severity of their skin condition, and 88% achieved clear or nearly clear skin, as determined by IGA scores of 0/1. With a market capitalization of $165.67 million, ACRS has seen volatile trading, including a sharp 60.87% decline over the past six months despite its promising pipeline.

The positive outcome from the Phase 2a study has propelled Aclaris to commence a more rigorous Phase 2 trial, which is randomized, double-blind, and placebo-controlled. This trial aims to further assess the efficacy and safety of bosakitug in around 90 patients suffering from moderate-to-severe AD. The primary goal is to measure the change from baseline in the Eczema Area and Severity Index (EASI) at week 24, along with other secondary endpoints that include various EASI responses, Investigator Global Assessment (IGA) response, body surface area response, and Peak Pruritus Numerical Rating Scale score.

H.C. Wainwright highlighted bosakitug’s superior potency, longer residence time, and unique TSLP binding characteristics, suggesting it could become a leading anti-TSLP therapeutic monoclonal antibody. The anticipation for top-line results from the ongoing trial is set for the second half of 2026.

Safety and tolerability are also key aspects of the Phase 2 trial, ensuring that alongside efficacy, the drug’s risk profile is thoroughly evaluated. The firm’s reiterated Buy rating and price target reflect a positive outlook for Aclaris’s stock over the next 12 months, banking on the potential success of bosakitug in the treatment of atopic dermatitis. InvestingPro analysis reveals the company maintains a healthy current ratio of 5.06, though it currently operates at a loss. Subscribers can access 8 additional ProTips and a comprehensive analysis of ACRS’s financial health, which is currently rated as FAIR by InvestingPro’s proprietary scoring system.

In other recent news, Aclaris Therapeutics has announced the commencement of a Phase 2 trial for its investigational drug bosakitug, aimed at treating moderate-to-severe atopic dermatitis. The trial will involve approximately 90 patients and follows promising results from an earlier Phase 2a study. Wedbush has initiated coverage on Aclaris with an Outperform rating, setting a price target of $8.00, citing the company’s focus on developing innovative treatments for immuno-inflammatory diseases. Meanwhile, H.C. Wainwright adjusted its price target for Aclaris to $16.00 from $20.00 but maintained a Buy rating, reflecting the latest developments in bosakitug’s clinical trials.

Aclaris also received FDA clearance for its Investigational New Drug application for ATI-052, a bispecific monoclonal antibody, marking a significant step in its clinical trial plans. The Phase 1a/1b trial for ATI-052 is expected to begin in the second quarter of 2025. Additionally, Aclaris appointed Dr. Jesse Hall as its new Chief Medical (TASE:BLWV) Officer, who will lead the company’s clinical strategy. Dr. Hall brings extensive experience from previous roles at various pharmaceutical companies. These developments highlight Aclaris’ ongoing efforts to advance its portfolio of treatments for immuno-inflammatory diseases.

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