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Rallybio shares retains Buy rating on treatment potential

EditorNatashya Angelica
Published 03/12/2024, 14:44
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In light of the recent updates, H.C. Wainwright has reiterated its confidence in Rallybio by maintaining the Buy rating and 12-month price target of $5.00 for the company's stock. This reiteration reflects the firm's outlook on the potential of RLYB116 to provide a more patient-friendly treatment option compared to existing C5 inhibitors.

Notably, the stock's beta of -1.67 indicates it often moves counter to market trends, potentially offering portfolio diversification benefits. For deeper insights into Rallybio's financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

Rallybio has improved the manufacturing process for RLYB116, which is anticipated to enhance the drug's tolerability. Moreover, the updated process is expected to result in greater complement inhibition, with over 99% free C5 knockdown, a significant increase from previous estimations.

InvestingPro data shows the company maintains a strong liquidity position with more cash than debt, though it's currently burning through cash reserves rapidly - crucial factors for investors monitoring the development pipeline.

The company is gearing up to begin a Phase 1 pharmacokinetic and pharmacodynamic (PK/PD) trial in the second quarter of 2025, aiming to confirm RLYB116’s efficacy profile. The trial will assess a four-week treatment duration in two cohorts, with results expected by the end of 2025. Positive outcomes from this study will be indicated by C5 levels below 3,500ng/mL without hemolysis.

The Phase 1 trial will also monitor for any gastrointestinal disturbances to evaluate the balance between drug tolerability and the method of administration. RLYB116, which is intended for once-weekly dosing, offers a more convenient subcutaneous (SC) alternative to the daily injections required by Zilbrysq, an FDA-approved SC C5 inhibitor for generalized myasthenia gravis (gMG).

In other recent news, Rallybio Corporation has initiated a Phase 2 clinical trial for RLYB212, a potential treatment for Fetal and Neonatal Alloimmune Thrombocytopenia (FNAIT). The trial is focused on pregnant women at heightened risk of HPA-1a alloimmunization and FNAIT.

Rallybio has also received approval from the European Medicines Agency and the UK's Medicines and Healthcare products Regulatory Agency for the trial. The company's non-clinical data suggests that their early lead oral ENPP1 inhibitor, REV101, could be an effective strategy for treating hypophosphatasia.

In recent developments, Rallybio has seen several executive transitions. Dr. Kush Parmar has resigned from the Board of Directors, and Dr. Martin Mackay will step down from his role as Executive Chairman by the end of 2024. Analysts from H.C. Wainwright and Jones Trading have maintained their Buy ratings for Rallybio, while JPMorgan has downgraded the company's stock to Neutral.

Rallybio's research indicates that FNAIT may be more prevalent in at-risk pregnancies than previously recognized. The company is preparing to launch a Phase 2 trial for RLYB212 in the fourth quarter of 2024, following positive outcomes from a Phase 1 proof-of-concept study.

Rallybio has also secured a strategic equity investment from Johnson & Johnson, which will support Rallybio's Phase 3 trial of nipocalimab for FNAIT treatment. These are the recent developments in Rallybio's ongoing commitment to addressing the needs of patients with severe and rare diseases.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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