Street Calls of the Week
Investing.com - Lucid Capital Markets initiated coverage on Adagene Inc (NASDAQ:ADAG) with a Buy rating and a price target of $9.00 on Thursday. The clinical-stage biotech company, currently valued at $96 million, has seen its stock decline nearly 13% in the past week, according to InvestingPro data.
The research firm views Adagene as a clinical-stage biotechnology company with significant potential in its antibody-based cancer immunotherapies, particularly its lead asset muzastotug, a CTLA-4 antibody targeting microsatellite stable metastatic colorectal cancer patients with no liver metastases. InvestingPro analysis shows the company maintains a healthy balance sheet with more cash than debt, though it’s currently burning through cash reserves rapidly.
Lucid Capital Markets estimates non-risk adjusted peak sales of approximately $1.2 billion by 2039 for muzastotug, assigning a 35% probability of success for this indication, which contributes $7 per share to their price target.
The firm identified key catalysts for investors coming in early 2026, with potential updated data from the ongoing Phase 1b/2 study, and later in 2026 with initial data from the Phase 2 study, which is expected to begin enrollment before the end of 2025.
Beyond muzastotug, Lucid Capital Markets values Adagene’s proprietary DPL platform at $2 per share, noting the company has already secured collaborations with large pharmaceutical companies including Sanofi and Exelixis.
In other recent news, Adagene Inc. has made significant strides in its clinical and strategic initiatives. The company announced that it will advance its lead program, muzastotug, into a Phase 2 trial following a successful meeting with the U.S. Food and Drug Administration. The trial, set to begin in the second half of 2025, will evaluate the drug in combination with Merck’s pembrolizumab for patients with microsatellite stable colorectal cancer. Additionally, Adagene has entered into a partnership with ConjugateBio Inc. to supply a proprietary antibody for bispecific antibody-drug conjugate development, with the agreement including potential milestone and royalty payments.
In terms of market analysis, H.C. Wainwright has adjusted its price target for Adagene to $7.00 from $8.00, maintaining a Buy rating, following the company’s alignment on trial designs for its Phase 2 and 3 studies. Meanwhile, Leerink Partners has initiated coverage on Adagene with an Outperform rating, citing the promising potential of the company’s lead program. In executive news, Dr. Axel Hoos, known for his work on YERVOY, has joined Adagene as an Executive Advisor to support its antibody-based cancer immunotherapy development. These developments highlight Adagene’s ongoing efforts in advancing its therapeutic programs and strategic partnerships.
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