H.C. Wainwright raises Tourmaline Bio stock target to $50

On Thursday, H.C. Wainwright analyst Yi Chen increased the price target for Tourmaline Bio (NASDAQ:TRML) to $50.00, up from the previous $49.00, while maintaining a Buy rating on the company’s stock. Currently trading at $17.04, TRML has received strong analyst support with a consensus Buy rating and price targets ranging from $42 to $74. According to InvestingPro, the stock has shown significant momentum, gaining 18.5% in the past week. Chen’s adjustment follows Tourmaline Bio’s announcement of its fourth-quarter and full-year financial results for 2024.

Tourmaline Bio reported a net loss of $22.2 million, or ($0.86) per share, for the fourth quarter of 2024, which was slightly above the estimated loss of $21.1 million. The net loss for the full year was $73.2 million, or ($2.89) per share. InvestingPro data reveals the company maintains a strong liquidity position with a current ratio of 40.33, though it’s currently burning through cash rapidly. For deeper insights into Tourmaline’s financial health and additional metrics, subscribers can access over 10 exclusive ProTips. The company has been actively engaged in the Phase 2 TRANQUILITY trial of pacibekitug, a drug being tested for atherosclerotic cardiovascular disease (ASCVD) in patients with elevated high-sensitivity C-reactive protein (hs-CRP) and chronic kidney disease (CKD).

The TRANQUILITY trial has enrolled 143 patients who have been randomized across four subcutaneous dosing arms, including 50 mg quarterly, 25 mg quarterly, 15 mg monthly, and a placebo group. The primary endpoint being measured is the change from baseline in hs-CRP levels, which are indicators of IL-6 mediated inflammation in ASCVD.

Chen noted that pharmacokinetic and pharmacodynamic (PK/PD) modeling suggests that the three doses of pacibekitug could achieve median reductions in hs-CRP of over 85%, 80%, and 90%, respectively. These results are comparable to the 88% median reduction achieved by Novo Nordisk (NYSE:NVO)’s ziltivekimab, another IL-6 inhibitor. Topline data from the TRANQUILITY trial is anticipated in the second quarter of 2025.

The upcoming Phase 3 ZEUS trial of ziltivekimab, which will provide further insight into IL-6 inhibition in ASCVD patients with CKD, is expected to release its topline data in late 2025 or early 2026. Ziltivekimab is administered subcutaneously once a month. Chen’s reassessment of Tourmaline Bio’s market value has resulted in an increase to $1.29 billion, or $50 per share. With a current market capitalization of $437.68 million, InvestingPro’s Fair Value analysis suggests the stock is fairly valued at current levels. The reiteration of the Buy rating and the updated 12-month price target reflect these developments.

In other recent news, Tourmaline Bio has garnered attention with Truist Securities maintaining a Buy rating and a price target of $74.00 for the company. The firm expressed confidence in Tourmaline Bio’s future, highlighting the anticipated Phase 2 TRANQUILITY trial data set for the second quarter of 2025 as a potential catalyst. This trial will provide initial data on the cardiovascular treatment, Paci, which is considered a multi-billion dollar opportunity. Analysts at Truist Securities noted that Tourmaline Bio’s stock is trading near its cash value, suggesting an attractive entry point for investors. The possibility of strategic partnerships adds to the positive outlook for the company. While some investors remain cautious about the timing of the Phase 3 ZEUS data, Truist Securities believes the current market price does not fully reflect the company’s significant upside potential. The TRANQUILITY trial results are expected to be pivotal for Tourmaline Bio, potentially validating Paci’s efficacy in treating cardiovascular conditions. As the company progresses through its clinical trials, its strategies and upcoming milestones are likely to attract investor interest.

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