On Wednesday, Alpha Tau Medical (TASE:PMCN) Ltd. (NASDAQ: DRTS) maintained its Overweight rating and $5.00 price target from Piper Sandler.
The firm acknowledged the company's third-quarter financial results, which included an operating loss of $8.3 million. This figure was notably better than the anticipated consensus of a $9.5 million loss. Additionally, the company's cash burn was reported to be relatively low at approximately $5.8 million.
Alpha Tau Medical's clinical advancements were also highlighted, with the firm noting progress in various areas. The expected completion of enrollment for the U.S. pivotal trial has been updated to the first half of 2025. The firm expressed optimism regarding the company's developments in treatments for internal organs, including pancreatic, lung, and glioblastoma multiforme (GBM).
"For the company and as it relates to DRTS shares, we do find it both intriguing and attractive that multiple milestones appear to be lining up for the 1H-25 across multiple indications, which could prove to be both catalytic for shares and provide a more defined direction for how investors can contemplate the commercial value of the disruptive Alpha DaRT technology," the firm said in its note.
The price target is based on an updated sum-of-the-parts valuation that reflects a longer path to commercialization.
In other recent news, Alpha Tau Medical was also reiterated at Buy at H.C. Wainwright.
The company recently reported a lower than expected second-quarter net loss of $7.4 million, with an operating loss of $9.1 million, slightly higher than analysts' expected $8.9 million. Alpha Tau Medical's ReSTART U.S. pivotal trial for recurrent cutaneous squamous cell carcinoma and the Canadian trial for advanced inoperable pancreatic cancer are progressing as planned.
Piper Sandler maintained an Overweight rating on the company, citing efficient financial management and progression of clinical trials.
InvestingPro Insights
To complement Piper Sandler's analysis of Alpha Tau Medical Ltd. (NASDAQ: DRTS), recent data from InvestingPro offers additional context for investors. The company's market capitalization stands at $160.83 million, reflecting its current valuation in the market.
InvestingPro Tips highlight that Alpha Tau holds more cash than debt on its balance sheet, which aligns with the low cash burn rate mentioned in the article. This financial position could provide the company with a buffer as it progresses through its clinical trials and awaits potential commercialization.
Another InvestingPro Tip notes that two analysts have revised their earnings upwards for the upcoming period, suggesting some optimism about the company's near-term financial performance. This could be related to the better-than-expected operating loss reported in the third quarter.
However, it's important to note that Alpha Tau is not currently profitable, with a negative P/E ratio of -5.79. The company's return on assets stands at -26.66%, indicating challenges in generating profit from its assets, which is not uncommon for biotech companies in the development stage.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into Alpha Tau Medical's financial health and market position.
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