Maxim Group initiates coverage on Akari Therapeutics stock with Buy rating

Investing.com - Maxim Group initiated coverage on Akari Therapeutics (NASDAQ:AKTX) with a Buy rating and a $5.00 price target on Friday. The stock, currently trading at $1.13 with a market capitalization of $37 million, is showing potential according to InvestingPro analysis, which indicates the stock may be undervalued.

The research firm highlighted Akari’s antibody drug conjugates (ADCs) that deliver PH1, a novel spliceosome inhibitor that induces both cytotoxicity and neoantigen production. Maxim noted this approach may avoid toxicities associated with microtubule inhibitors and DNA-damaging agents commonly used as payloads for ADCs.

Akari’s lead asset is AKTX-101, a preclinical PH1-Trop2 candidate for solid tumors that has demonstrated efficacy as a single agent, synergy with checkpoint inhibitors, and favorable safety profiles.

The company merged with Peak Bio in November 2024, acquiring the ADC platform and installing a new management team. Maxim indicated Akari has cash runway into the fourth quarter of 2025 and is working to address its capital needs. InvestingPro data reveals the company’s current ratio of 0.16 and negative EBITDA of $14.2 million in the last twelve months, highlighting the importance of addressing these capital requirements.

Maxim Group characterized Akari as an "under-the-radar" opportunity in the high-value ADC space, which has seen numerous partnering and licensing deals for preclinical and discovery stage assets. Despite the stock’s 69% decline over the past year, analysts maintain a consensus Buy rating with a $7 price target. Get more detailed financial insights and 7 additional key tips for AKTX with InvestingPro.

In other recent news, Akari Therapeutics has announced several key developments. The company held its Annual General Meeting, where shareholders approved an increase in shares available under the 2023 Equity Incentive Plan and re-elected all director nominees. Additionally, shareholders ratified BDO USA, P.C. as the independent registered public accounting firm and approved a proposal authorizing the board to allot shares and grant rights up to $20 million through June 2030. In another update, Akari secured a patent in India for its PH1 payload technology, which is designed for cancer treatment applications. This patent adds to Akari’s existing intellectual property portfolio, which already includes patents in the United States, China, and Israel. Furthermore, Akari appointed Mark F. Kubik as the new Head of Business Development - Oncology, bringing over 25 years of industry experience to the role. Kubik will focus on advancing Akari’s antibody drug conjugate platform and its lead asset, AKTX-101. These recent developments underscore Akari’s strategic focus on expanding its oncology business and strengthening its intellectual property portfolio.

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