Spruce Biosciences stock price target raised to $160 from $10 at Leerink

Investing.com - Leerink Partners raised its price target on Spruce Biosciences, Inc. (NASDAQ:SPRB) to $160.00 from $10.00 on Tuesday, while maintaining a Market Perform rating on the stock. The company’s shares, currently trading at $135.00, have delivered an impressive 1,636% return over the past six months, according to InvestingPro data.

The significant price target increase follows Spruce’s strategic pivot from congenital adrenal hyperplasia to mucopolysaccharidosis type IIIB (MPS IIIB), after disappointing results for its former lead asset, tildacerfont, in December 2024. With a current ratio of 2.6 and more cash than debt on its balance sheet, the company appears well-positioned for this transition.

Spruce acquired tralesinidase alfa enzyme replacement therapy (TA-ERT), a late-stage treatment for the pediatric neurodegenerative disorder MPS IIIB, in April 2025. The program initially received limited market attention until the FDA granted it Breakthrough Therapy Designation.

According to Leerink Partners, this regulatory designation served as a "critical feather" in Spruce’s cap, boosting investor confidence in a program that had previously faced challenges under different sponsors.

The breakthrough designation has propelled the stock higher and enabled the company to secure necessary financing, supporting Leerink’s substantial price target revision despite maintaining its neutral Market Perform rating.

In other recent news, Spruce Biosciences announced it has entered into a definitive securities purchase agreement for a private placement, expected to generate approximately $50 million in gross proceeds. The company plans to use these funds to advance its tralesinidase alfa enzyme replacement therapy for Sanfilippo Syndrome Type B, with a biologics license application submission anticipated in the first quarter of 2026. Additionally, Spruce Biosciences received Breakthrough Therapy Designation from the U.S. Food and Drug Administration for the same therapy. This designation is expected to expedite the development and regulatory review process, supported by clinical data indicating potential clinical benefits. The FDA’s confirmation that a specific biomarker could serve as a basis for accelerated approval further strengthens the therapy’s prospects. Spruce Biosciences also announced that it will resume trading on the Nasdaq Capital Market. These developments highlight significant progress and potential future milestones for the company.

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