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On Friday, Jones Trading analyst Justin Walsh upgraded BioLineRx stock, traded on (NASDAQ:BLRX), from Hold to Buy, setting a price target of $12.00. The stock, which has seen a strong 63.6% return over the last month according to InvestingPro data, currently trades at $6.20 with a market capitalization of approximately $14 million. The upgrade follows promising pilot phase data from a Phase II trial involving BioLineRx’s motixafortide in combination with other treatments for pancreatic cancer.
The trial, which combined motixafortide with the PD-1 inhibitor cemiplimab and chemotherapy, showed that 7 out of 11 patients responded to the therapy. This represents a 64% objective response rate (ORR), significantly higher than the 23% historical benchmark. While the company’s financial metrics show promise, with a healthy current ratio of 2.27 and more cash than debt on its balance sheet according to InvestingPro, investors should note that the company is currently burning through cash rapidly. Additionally, 10 out of 11 patients achieved disease control, marking a 91% disease control rate (DCR) compared to the 48% historical benchmark. Impressively, 4 out of 11 patients were progression-free for over a year.
The encouraging results have paved the way for the trial to progress to the randomized Phase II stage. This next phase will involve 108 patients with pancreatic cancer (PDAC), who will receive either the triple combination treatment or chemotherapy alone. The trial aims for full enrollment by 2027, with an interim analysis scheduled when 40% of progression-free survival (PFS) events have been reported.
Despite the transfer of motixafortide’s commercialization rights to Ayrmid, BioLineRx retains the rights to the asset in solid tumors. In light of the recent data, Jones Trading has increased the probability of success for motixafortide in treating PDAC to 2.5% from the previous 0%. While acknowledging the difficulty of treating pancreatic cancer, the firm justifies the increase due to the favorable outcomes observed in the trial, despite the small patient number.
Looking ahead, Jones Trading anticipates that BioLineRx will explore further opportunities, such as partnering the asset or funding a pivotal trial, assuming the Phase II results remain favorable. With revenue of $22.34 million in the last twelve months and a gross profit margin of 64.9%, the company shows potential despite current challenges. For a comprehensive analysis of BioLineRx’s financial health and growth prospects, including 10+ additional ProTips and detailed valuation metrics, investors can access the full research report on InvestingPro. The firm also suggests that investor attention might shift to any new asset BioLineRx plans to in-license following the upcoming full poster presentation at the American Society of Clinical Oncology (ASCO) meeting scheduled for May 31, 2025. However, with pancreatic cancer treatment now a significant part of BioLineRx’s portfolio, Jones Trading expects more favorable momentum for the company’s stock.
In other recent news, BioLineRx Ltd . reported promising results from its CheMo4METPANC Phase 2 trial, which evaluates motixafortide combined with other therapies for pancreatic cancer. The trial showed a 64% overall response rate and a 91% disease control rate, surpassing historical data for standard treatments. Encouraged by these results, BioLineRx plans to expand the study to a randomized trial with 108 patients, aiming for full enrollment by 2027. Meanwhile, BioLineRx’s financial performance has drawn attention, with H.C. Wainwright maintaining a Buy rating and raising the stock target to $26.00, citing strong first-quarter earnings and a cash position expected to last into 2026. The company reported $1.4 million in U.S. sales of APHEXDA for the first quarter of 2025, contributing to $0.3 million in royalty revenue. Despite financial stability, Jones Trading downgraded BioLineRx to a Hold rating, emphasizing the need for further pipeline developments, particularly in-licensing new assets. BioLineRx has also made strategic moves to enhance its pipeline, such as activating additional sites for its pancreatic cancer trial and initiating a Phase 1 trial for motixafortide in Sickle Cell Disease. These developments underscore BioLineRx’s ongoing efforts to advance its clinical and financial strategies.
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