On Thursday, Jefferies, a global investment banking firm, updated its outlook on Celcuity Inc (NASDAQ:CELC), raising the price target from $28.00 to $33.00 while keeping a Buy rating on the shares. Currently trading at $11.27, the stock sits well below analyst targets ranging from $23 to $42. According to InvestingPro data, analysts maintain a Strong Buy consensus with significant upside potential. The adjustment follows the recent EMBER-3 clinical trial results, which were presented at the San Antonio Breast Cancer Symposium (SABCS).
The EMBER-3 trial results demonstrated a progression-free survival (PFS) of approximately 9 months in the doublet arm of the study. While the company holds more cash than debt and maintains strong liquidity with a current ratio of 10.36, InvestingPro analysis indicates rapid cash burn requires careful monitoring. Jefferies analyst Maury Raycroft expressed interest in whether the VIKTORIA-1 trial’s triplet arm could show a significant difference in outcomes. To address this, Jefferies developed a proprietary clinical trial simulator to estimate the potential outcome of the triplet arm.
According to the simulation, there is an approximately 80% chance that the triplet arm will achieve a PFS greater than 12 months. The median PFS for most scenarios is estimated to be between roughly 11 to 16 months. These projections are based on the anticipation of the Phase III HR+ HER2- WT mBC trial readout, which is expected in late-first quarter to second quarter of 2025, with potential outcomes ranging from a 100% increase to a 50% decrease.
Jefferies has made their customized analysis available upon request for those interested in further details regarding the potential outcomes of Celcuity’s clinical trials. The firm’s price target increase reflects a positive outlook on the biotechnology company’s ongoing research and development efforts in the field of cancer treatment.
In other recent news, Celcuity Inc. has disclosed significant developments in its financial performance and clinical trials. The company reported a net loss of $29.8 million in the third quarter of 2024, primarily due to increased research and development expenses related to the progression of clinical trials for the drug gedatolisib. Despite the net loss, the company maintained a solid cash position of $264.1 million, thanks to successful financing activities.
Celcuity also revealed promising survival data for its breast cancer drug, gedatolisib. The drug has been granted U.S. Food and Drug Administration Breakthrough Therapy designation for treating HR+/HER2- advanced breast cancer. The company is currently conducting a Phase 1b/2 trial for gedatolisib in metastatic castration-resistant prostate cancer and expects to begin enrolling patients in the VIKTORIA-2 trial soon.
Analysts have noted that Celcuity’s R&D expenses rose to $27.6 million, driven by the VIKTORIA-1 and VIKTORIA-2 trials for gedatolisib. Despite the increased net loss and R&D expenses, the company maintains a positive outlook, hoping for gedatolisib to become a new standard of care for HR-positive, HER2-negative advanced breast cancer. These are recent developments that have been reported by Celcuity Inc. and analysts covering the company’s progress.
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