Oppenheimer maintains Outperform on Adverum stock, $32 target

On Tuesday, Oppenheimer research firm reiterated an Outperform rating with a $32.00 price target for Adverum Biotechnologies (NASDAQ:ADVM) shares, representing significant upside potential from the current price of $4.16. According to InvestingPro data, analyst price targets for ADVM range from $10 to $40, with the stock currently appearing undervalued based on Fair Value analysis. The biotech company, with a market capitalization of $86.54 million, has launched its first pivotal Phase 3 non-inferiority study of Ixo-vec, adhering to their planned schedule. The study in the United States will compare a single dose of Ixo-vec to 2mg of alibercept, focusing on the primary endpoint of mean Best Corrected Visual Acuity (BCVA) change during weeks 52-56. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, though it’s currently burning through cash rapidly. Participants will receive three monthly loading doses of aflibercept before being administered Ixo-vec. Both arms of the study will be given topical steroid eye drops.

Analysts at Oppenheimer have expressed confidence in the success of the Phase 3 ARTEMIS study, citing the significant one-year efficacy and safety data from the Phase 2 LUNA study. The firm anticipates that the ARTEMIS study is considerably de-risked, which supports their positive stance on the stock. They are also awaiting further details on the second global Phase 3 study named AQUARIUS.

The treatment being tested, Ixo-vec, is aimed at addressing wet Age-related Macular Degeneration (AMD (NASDAQ:AMD)), a condition where up to 42% of patients discontinue treatment after two years, indicating a significant unmet medical need. The potential for Ixo-vec to be the best-in-class therapy is further supported by patient survey results, with 100% of patients who received the 6E10-dose expressing a preference for Ixo-vec over other treatments.

Oppenheimer’s continued endorsement of an Outperform rating and a $32 price target for Adverum Biotechnologies is based on the broad inclusion criteria for the Phase 3 study and the enthusiasm from Key Opinion Leaders (KOLs). The firm’s analysts believe these factors, combined with the promising data from earlier trials, reinforce the commercial potential of Ixo-vec. For deeper insights into ADVM’s financial health and growth prospects, including 10+ additional ProTips and comprehensive valuation metrics, explore the full research report available on InvestingPro.

In other recent news, Adverum Biotechnologies has launched the ARTEMIS Phase 3 study to evaluate its gene therapy candidate, Ixo-vec, for wet age-related macular degeneration (AMD). This trial is notable for being the first registrational intravitreal gene therapy trial targeting wet AMD, involving approximately 284 U.S.-based patients. The study aims to compare a single administration of Ixo-vec with the standard treatment, aflibercept, to determine if Ixo-vec is non-inferior in improving visual acuity after one year. The trial also seeks to measure the reduction in the number of injections required, addressing the high treatment burden associated with current therapies. Ixo-vec has received Fast Track and Regenerative Medicine Advanced Therapy designations from the FDA, highlighting its potential significance in the field. The ARTEMIS trial follows positive results from earlier OPTIC and LUNA trials, and Adverum anticipates that the data generated will support regulatory approval. The company’s commitment to advancing gene therapy as a new standard of care for ocular diseases is underscored by this trial’s initiation. Adverum aims to offer a more convenient and potentially more effective treatment option for wet AMD patients.

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