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On Thursday, H.C. Wainwright maintained a positive outlook on LENZ Therapeutics Inc (NASDAQ:LENZ), a $702 million market cap company trading at $25.52, reiterating a Buy rating and a $38.00 price target. The firm’s analyst, Matthew Caufield, highlighted the upcoming PDUFA date on August 8, 2025, for the company’s aceclidine-based eye drop LNZ100, which is under review for FDA approval as a treatment for presbyopia. According to InvestingPro data, analysts maintain a Strong Buy consensus on the stock, with additional valuable insights available in the comprehensive Pro Research Report.
Presbyopia, a common age-related condition that leads to farsightedness due to the loss of lens elasticity, typically requires the use of reading glasses. LENZ’s LNZ100 is aiming to offer an alternative as the first aceclidine-based daily topical eye drop for near vision improvement that does not incorporate pilocarpine, a drug associated with safety concerns. InvestingPro analysis shows the company maintains a GOOD financial health score, with strong cash positions exceeding debt obligations.
Caufield noted the first topical presbyopia drops, VUITY from Allergan/AbbVie, which contained pilocarpine, encountered issues with durability and safety, including the risk of retinal tears and detachment due to its effect on the ciliary muscle. In contrast, LNZ100 is designed to act differently by selectively targeting the iris sphincter muscle, which could result in a more durable efficacy and a better safety profile.
The analyst expressed confidence that LNZ100’s novel mechanism, which spares the ciliary muscle during pupil constriction, will resonate with prescribers and address the concerns associated with previous treatments. This optimism is a driving factor behind the reaffirmed Buy rating and price target for LENZ Therapeutics as the PDUFA date approaches. Analyst targets range from $36 to $60, with the company scheduled to report earnings on March 26. For deeper insights into LENZ’s valuation and growth potential, explore the detailed financial metrics available on InvestingPro.
In other recent news, LENZ Therapeutics Inc. reported its Q4 2024 financial results, highlighting a strong focus on innovation and market expansion in the presbyopia treatment sector. The company ended the year with $209.1 million in cash, ensuring a robust financial position as it moves toward product commercialization. Operating expenses decreased significantly to $15.2 million from $25 million the previous year, while the net loss stood at $12.7 million, or $0.46 per share. LENZ is preparing for the commercial launch of its LNZ100 eye drop treatment, with a PDUFA date scheduled for August 8, 2025.
In other developments, Citi analyst Yigal Nochomovitz raised the price target for LENZ Therapeutics to $47, maintaining a Buy rating on the stock. This adjustment reflects increased confidence in the company’s progress and the potential approval of its leading product candidate, LNZ100. The company recently completed a mid-cycle review without issues, reinforcing expectations of a high likelihood of approval. LENZ plans to engage 15,000 eye care professionals and execute comprehensive marketing campaigns as it prepares for its Q4 2025 product launch.
Additionally, LENZ Therapeutics is set to host a Commercial Day event in April, aiming to provide insights into its marketing strategies. The company’s Vice President of Marketing, with a background in globally recognized lifestyle brands, will play a key role in these commercial endeavors.
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