H.C. Wainwright maintains Lisata Therapeutics stock rating on AI partnership

Published 18/06/2025, 12:40
H.C. Wainwright maintains Lisata Therapeutics stock rating on AI partnership

H.C. Wainwright reiterated its Buy rating and $15.00 price target on Lisata Therapeutics, Inc (NASDAQ:LSTA) on Wednesday, representing significant upside from the current trading price of $2.40. According to InvestingPro data, analyst consensus remains strongly bullish with price targets ranging from $15 to $20. The research firm’s decision follows Lisata’s announcement Tuesday about expanding its strategic collaboration with privately-held GATC Health Corp.

The expanded partnership builds on previous work where GATC’s MAT artificial intelligence platform analyzed Lisata’s certepetide drug to identify optimized development opportunities across various indications. GATC’s technology simulates billions of biological interactions to predict safety, efficacy, and clinical trial outcomes. InvestingPro analysis shows Lisata maintains a strong financial position with more cash than debt and a healthy current ratio of 7.52, though the company is currently burning through cash rapidly.

Under the expanded collaboration, GATC will use its AI platform to identify potential combination drugs for certepetide across multiple indications, including areas outside oncology. Lisata plans to optimize its Phase 3 development of certepetide in metastatic pancreatic ductal adenocarcinoma while exploring new indications with high success probability.

The partnership now includes Lisata serving as an operational partner for GATC’s drug development candidates, which target conditions including opioid addiction, PTSD, diabetes, obesity, glioblastoma, and cognitive design. The first program selected for advancement is a therapeutic agent targeting opioid use disorder. For deeper insights into biotech companies like Lisata and their development pipelines, InvestingPro subscribers can access comprehensive Pro Research Reports covering 1,400+ stocks, featuring detailed analysis of financial health metrics and growth potential.

GATC’s opioid use disorder candidate is a non-opioid small molecule that has demonstrated significant reduction in fentanyl intake in mouse models. The asset is targeted to enter Phase 1 human trials in the first half of 2026, with Lisata helping accelerate the development and regulatory process.

In other recent news, Lisata Therapeutics reported a significant improvement in its financial performance for the first quarter of 2025. The company successfully reduced its operating expenses by 11.4% year-over-year, resulting in a narrowed net loss of $4.7 million compared to $5.4 million in the same period last year. Lisata’s strategic focus on innovative oncology treatments, particularly its lead product Cerdepatide, continues to bolster its position in the competitive healthcare landscape. The company maintains a cash runway into the third quarter of 2026, which supports its ongoing and planned activities. Lisata is also making progress with its clinical development programs, including the ASCEND and BOLTAR trials, which are expected to yield significant milestones and data presentations in 2025. Furthermore, the company is exploring potential collaborations and partnerships to enhance development opportunities for Cerdepatide. These recent developments underscore Lisata’s commitment to advancing its oncology treatments while managing operational costs effectively.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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