JMP maintains AN2 Therapeutics stock $5 target, market outperform

Published 26/03/2025, 09:54
JMP maintains AN2 Therapeutics stock $5 target, market outperform

On Wednesday, JMP Securities analyst Roy Buchanan reaffirmed a Market Outperform rating and a $5.00 price target on AN2 Therapeutics (NASDAQ:ANTX), as the company prepares for a significant milestone in its clinical development. According to InvestingPro data, this target represents significant upside potential from the current trading price of $1.50, though analyst targets range from $1.00 to $5.00. The stock currently appears undervalued based on InvestingPro’s Fair Value analysis. Buchanan’s confidence in AN2 Therapeutics is anchored in the anticipated unblinding of Phase 3 trial results for its refractory Mycobacterium avium complex (MAC) nontuberculous mycobacteria (NTM) treatment next quarter, which he believes could represent a market opportunity exceeding $1 billion.

AN2 Therapeutics concluded the fourth quarter and full fiscal year 2024 with financial results that matched JMP Securities’ expectations and the consensus estimates. The company reported ending the year with approximately $89 million in cash reserves and projected that its current operational plans would sustain it through 2027. InvestingPro analysis shows strong liquidity with a current ratio of 9.75, while the company maintains a "Fair" overall financial health score. Get deeper insights into AN2 Therapeutics’ financial position with InvestingPro’s comprehensive research report, one of 1,400+ available for US equities.

The focal point of AN2 Therapeutics’ current operations is the upcoming Phase 3 trial results for epetraborole, an oral antibiotic candidate. The study involves 97 patients with refractory pulmonary MAC NTM and is expected to be unblinded in the second quarter of 2025, pending there are no unforeseen requests from the FDA. Buchanan’s optimism is further bolstered by the promising data from Phase 2 trials in the same patient demographic, as well as positive industry feedback, including recent insights from two key opinion leaders (KOLs).

Moreover, the validation of the Quality of Life Bronchiectasis (QOL-B) patient-reported outcome by Insmed (NASDAQ:INSM) in its work with Arikayce lends additional support to the potential success of AN2 Therapeutics’ Phase 3 trial. This outcome measure is considered critical for assessing the efficacy of treatments in this patient population.

In summary, JMP Securities maintains a positive outlook on AN2 Therapeutics as the company approaches a pivotal moment in its pursuit of providing a new treatment option for refractory MAC NTM. The firm’s reiteration of the $5.00 price target and Market Outperform rating reflects a belief in the company’s potential to address a significant unmet medical need. With a market capitalization of just $44.82 million and a 6-month price return of 42.18%, InvestingPro subscribers can access additional metrics and ProTips to better evaluate this emerging biotech opportunity.

In other recent news, AN2 Therapeutics has reported its fourth quarter and full-year 2024 financial results, aligning with both JMP Securities’ projections and consensus estimates. The company ended the fiscal year with approximately $89 million in cash reserves, projecting that its current financial resources should support operations through 2027. AN2 Therapeutics is preparing to unblind the Phase 3 trial data for its lead drug candidate, epetraborole, in the second quarter of 2025. This trial, targeting refractory pulmonary MAC NTM, is closely watched, with expectations bolstered by promising Phase 2 results and positive feedback from key opinion leaders. JMP Securities has maintained a Market Outperform rating on AN2 Therapeutics with a $5.00 price target, citing confidence in the upcoming Phase 3 results and potential FDA discussions. The company has amended its statistical analysis plan for the Phase 3 trial, designating the Quality of Life - Bronchiectasis (QOL-B) as the primary efficacy endpoint. This decision follows the FDA’s guidance for NTM drug development, which recommends patient-reported outcomes in registrational trials. AN2 Therapeutics’ strategy aligns with successful precedents in the field, potentially strengthening its case for FDA approval.

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