Lisata Therapeutics stock price target raised to $32 from $20 at Brookline

Investing.com - Brookline Capital Markets raised its price target on Lisata Therapeutics, Inc (NASDAQ:LSTA) to $32.00 from $20.00 while maintaining a Buy rating. Currently trading at $2.75, the company maintains a strong financial position with more cash than debt on its balance sheet, according to InvestingPro data.

The price target increase follows Lisata’s receipt of a new patent for certepetide that extends protection into March 2040, significantly longer than previously modeled. While analysts project sales growth, InvestingPro analysis indicates the company is currently burning through cash rapidly, with profitability not expected this year.

U.S. composition of matter patent No. 12,351,653 includes claims to certepetide’s chemical structure, pharmacokinetic properties, manufacturing methods, and applications for treating solid tumor cancers.

Brookline’s valuation model previously relied on the drug’s Orphan Drug designation for market protection, which would have provided seven years of protection through 2035, assuming a 2029 launch.

The firm updated its model to reflect the extended exclusivity period through March 2040, resulting in the 60% increase in price target.

In other recent news, Lisata Therapeutics reported an improved financial performance for Q1 2025, with a significant reduction in operating expenses by 11.4% compared to the same period last year. The company’s net losses also narrowed to $4.7 million from $5.4 million in Q1 2024. Lisata’s strategic collaborations, such as the expanded partnership with GATC Health Corp, are enhancing development opportunities, including the use of GATC’s AI platform to identify potential combination drugs for their lead product, certepatide. This collaboration aims to optimize Phase 3 development in metastatic pancreatic ductal adenocarcinoma and explore new indications. Additionally, H.C. Wainwright reiterated its Buy rating and $15.00 price target on Lisata Therapeutics, following the announcement of the expanded partnership with GATC Health. The company maintains a cash runway into Q3 2026, supporting ongoing operations and development activities. Looking ahead, Lisata anticipates a data-rich year with significant milestones expected, including trial data presentations and potential new trials.

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