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On Monday, Oppenheimer initiated coverage on Quince Therapeutics Inc. (NASDAQ:QNCX) with an Outperform rating and a price target of $10.00. Currently trading at $1.38 with a market capitalization of approximately $61 million, the stock sits within a broader analyst target range of $6-$12, according to InvestingPro data. The new coverage comes as the biopharmaceutical company prepares for Phase 3 trial results for its lead candidate, EryDex, in treating ataxia-telangiectasia (A-T), a rare and fatal pediatric neurodegenerative disorder that currently has no approved therapies.
Quince Therapeutics’ EryDex has been identified as having significant market potential, with Oppenheimer projecting $200 million in U.S. sales by 2031. The company’s drug-device platform is also recognized for its potential to address a range of rare disorders, offering durable market exclusivity. The firm’s positive outlook is supported by checks with key opinion leaders, prior clinical data, and a pivotal trial design that is perceived as heavily derisked.
The analyst at Oppenheimer highlighted the upside potential of EryDex, particularly for its prospects to improve the standard of care in Duchenne muscular dystrophy (DMD), which is a second indication where the company has good visibility. The anticipation of these developments has contributed to the optimistic price target and rating.
Quince Therapeutics is also noted for its financial position, with current cash reserves expected to sustain the company beyond the upcoming reveal of the A-T trial results. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 9.53, holding more cash than debt on its balance sheet. However, investors should note that the company is quickly burning through cash, which is typical for clinical-stage biotech companies. This financial stability is a key factor in the analyst’s confidence in the company’s ability to continue its development and commercialization efforts for its therapies.
The Outperform rating and $10 price target reflect a positive view of Quince Therapeutics’ prospects in the biopharmaceutical industry, particularly in the niche market of rare pediatric neurodegenerative diseases. According to InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with eight additional exclusive ProTips available to subscribers. As the company approaches the critical Phase 3 trial results and its next earnings report on March 24, 2025, investors will be closely monitoring the outcomes and potential impact on the company’s future.
In other recent news, Quince Therapeutics has received a Notice of Allowance from the U.S. Patent and Trademark Office for its EryDex technology, a treatment method for Ataxia-Telangiectasia (A-T). This development extends the patent claims for EryDex until 2036, providing Quince with significant market exclusivity. The EryDex technology involves the encapsulation of the corticosteroid dexamethasone sodium phosphate within a patient’s red blood cells, aiming to enhance drug efficacy while reducing adverse effects. The expected patent will likely be listed in the FDA’s Orange Book, offering additional protection under the Hatch-Waxman Act. Quince has already received Orphan Drug Designation for EryDex in both the U.S. and Europe, further securing its market position. The company also plans to pursue similar patent claims in Europe, highlighting its strategy to protect its intellectual property internationally. This advancement is significant for the estimated 4,600 U.S. patients and approximately 5,000 patients in the U.K. and EU4 affected by A-T, as there are currently no approved treatments available.
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