H.C. WAINWRIGHT REITERATES BUY ON ENTRADA STOCK, $20 TARGET

On Tuesday, H.C. Wainwright maintained a Buy rating on Entrada Therapeutics shares, with a price target of $20.00. The $476 million market cap biotechnology company, currently trading at attractive valuations with a P/E ratio of 12.79, received significant regulatory news. The firm’s analyst, Boobalan Pachaiyappan, highlighted a crucial milestone, noting the U.S. Food and Drug Administration (FDA) has removed the clinical hold on ENTR-601-44, a potential treatment for Duchenne muscular dystrophy (DMD). According to InvestingPro data, the company appears undervalued based on its Fair Value analysis.

The FDA’s decision allows Entrada Therapeutics to initiate the ELEVATE-44-102 study, a Phase 1b multiple ascending dose clinical trial for adult DMD patients with a specific genetic mutation. The ELEVATE-44 program aims to evaluate ENTR-601-44 in a wide range of DMD patients, both within and outside the United States, to assess its efficacy in early and advanced stages of the disease. With a strong current ratio of 6.59 and more cash than debt on its balance sheet, the company appears well-positioned to fund its clinical development programs.

Pachaiyappan expressed confidence in the company’s prospects, citing the lift of the clinical hold as a critical step in reducing the development risks associated with Entrada’s pipeline. The analyst anticipates that Entrada will prioritize generating proof-of-concept data from studies conducted outside the U.S. before proceeding with clinical evaluations within the country.

The recent regulatory development is also seen as an indicator of the FDA’s increasing confidence in Entrada’s platform. This could potentially streamline the process for Entrada to gain future FDA approvals for other candidates in its pipeline.

In conclusion, H.C. Wainwright reaffirmed their optimistic stance on Entrada Therapeutics, underpinned by the company’s recent regulatory progress and the anticipated impact on its clinical development trajectory. The firm’s price target of $20 per share reflects this positive outlook.

In other recent news, Entrada Therapeutics has received authorization from the U.S. Food and Drug Administration to proceed with a Phase 1b clinical trial for its investigational treatment for Duchenne muscular dystrophy (DMD), ENTR-601-44. This follows a similar approval from the UK’s Medicines and Healthcare Products Regulatory Agency, marking a significant step in evaluating the drug’s safety and efficacy. H.C. Wainwright has maintained a Buy rating and a $20 price target for Entrada Therapeutics, reflecting confidence in the company’s progress in addressing DMD. Meanwhile, Roth/MKM has also issued a Buy rating with a $29 price target, citing optimism about the company’s drug neflamapimod and its potential market impact. The firm highlighted the positive results from a Phase 2a study of neflamapimod for Dementia with Lewy bodies, with further results anticipated later in 2024. Additionally, Azenta, Inc. has elected Entrada’s CEO, Dipal Doshi, to its Board of Directors, emphasizing his expertise in biotechnology and pharmaceuticals. These developments underscore Entrada Therapeutics’ ongoing efforts in advancing its therapeutic pipeline and expanding its leadership influence within the industry.

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