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Investing.com - Leerink Partners has reduced its price target on Eledon Pharmaceuticals (NASDAQ:ELDN) to $5.00 from $8.00 while maintaining an Outperform rating on the stock. The company’s shares currently trade at $2.06, having plummeted 52.75% over the past week, according to InvestingPro data.
The adjustment follows topline results from the Phase 2 BESTOW study for tegoprubart, the company’s CD40L antibody being developed for renal transplantation.
Leerink analyst Thomas Smith cited "more conservative clinical timelines and tempered commercial assumptions" for tegoprubart in renal transplantation as the primary reasons for the target reduction.
The firm now projects a 2030 market launch for the treatment with approximately $490 million in revenues by 2035, compared to its previous forecast of a 2028 launch with roughly $580 million in 2035 revenues. Despite Leerink’s reduced target, InvestingPro shows analyst targets ranging from $5 to $12, with the stock currently appearing undervalued based on Fair Value calculations.
Despite the lowered price target, Leerink increased its clinical and regulatory probability of success estimate to 65% from 55%, based on data from the BESTOW study and Eledon’s expected pursuit of a non-inferiority claim versus the current standard of care. The company maintains a P/E ratio of 9.28 and holds more cash than debt on its balance sheet, with InvestingPro assigning it a "FAIR" financial health rating. Discover more insights with additional InvestingPro Tips.
In other recent news, Eledon Pharmaceuticals announced mixed results from its Phase 2 BESTOW trial evaluating tegoprubart for kidney transplant rejection prevention. The trial, which included 127 kidney transplant recipients globally, showed that tegoprubart had a favorable safety profile with lower rates of diabetes, tremor, and hypertension compared to the standard treatment, tacrolimus. However, the drug did not meet its primary efficacy endpoint, which is a critical measure for its success. Despite this, the company highlighted that patients on tegoprubart maintained kidney function with an estimated glomerular filtration rate of 69 mL/min/1.73 m² at 12 months. Eledon Pharmaceuticals plans to present these findings at the American Society of Nephrology’s Kidney Week 2025 Annual Meeting in Houston. The presentation will be delivered by Dr. Andrew Adams from the University of Minnesota. These developments are noteworthy for investors keeping an eye on Eledon’s progress in the pharmaceutical sector.
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