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Tuesday, H.C. Wainwright reaffirmed its Buy rating and $80.00 price target on Structure Therapeutics (NASDAQ:GPCR) stock, which currently trades at $23.10 after surging 22% in the past week. The firm’s analyst, Ananda Ghosh, provided insights following recent developments in the oral GLP-1 drug market. According to InvestingPro data, analyst targets range from $50 to $118, with a strong consensus recommendation of 1.5 (Buy). Last week, two significant events occurred that impacted the landscape. Pfizer (NYSE:PFE) decided to discontinue danuglipron due to liver toxicity concerns, while Lilly’s orforglipron demonstrated statistically significant results in reducing A1c levels and weight over a 40-week ACHIEVE-1 trial.
Ghosh highlighted the potential advantages of Structure Therapeutics’ alenglipron over its competitors. Alenglipron’s unique structural properties may lead to differentiated weight loss results in the upcoming ACCESS trials. The analyst noted that the drug’s clear safety and toxicity profile could give it an edge in the market.
Furthermore, Ghosh speculated that alenglipron could achieve a 12-15% weight loss in obese patients in the ACCESS trial, based on orforglipron’s performance in Type 2 diabetes patients. This would be notable, as substantial weight loss in this demographic has historically been difficult to achieve.
The analyst also viewed the high rate of nausea seen in the Proof of Concept (PoC) trial of alenglipron as a positive sign, given the trial’s short duration and rapid dosage increase. Importantly, alenglipron had a lower discontinuation rate compared to danuglipron and orforglipron, which Ghosh sees as a favorable indicator.
In summary, H.C. Wainwright’s analysis suggests that alenglipron’s differentiated profile and promising trial results may position Structure Therapeutics favorably in the oral GLP-1 agonist market. The firm stands by its Buy rating and $80 price target for the company’s stock. With a current ratio of 24.74 and more cash than debt on its balance sheet, the company appears financially stable for its development phase. Get comprehensive insights and access to Structure Therapeutics’ detailed Pro Research Report, along with 1,400+ other top stocks, exclusively on InvestingPro.
In other recent news, Structure Therapeutics has been in the spotlight due to several key developments. Leerink Partners recently adjusted its price target for the company to $60 from $93, maintaining an Outperform rating while citing increased market competition as a factor for the revision. Meanwhile, JMP Securities has set a price target of $87, also recommending a Market Outperform rating, with emphasis on the significance of the upcoming ACCESS data for the company’s stock performance. The company reported a robust cash balance of $884 million at the end of 2024, expected to sustain operations through 2027, excluding Phase 3 registration study costs.
Structure Therapeutics is also preparing for the Phase 2 trial results of its drug candidate aleniglipron, anticipated by the end of 2025, which could be pivotal for advancing its lead program. The discontinuation of Pfizer’s obesity drug candidate, danuglipron, has been seen as beneficial for Structure Therapeutics, potentially reducing competition in the obesity treatment market. Analysts from Stifel have expressed confidence in Structure Therapeutics’ oral small molecule platform, noting its potential in the competitive landscape. Investors are closely monitoring these developments, as they could significantly influence the company’s position in the market.
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