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On Tuesday, Stifel analysts maintained a Buy rating and a $45.00 price target on Mineralys Therapeutics , Inc. (NASDAQ:MLYS) shares, expressing a positive outlook on the company’s upcoming clinical study results. Currently trading at $8.80, the stock has seen a significant decline of nearly 25% year-to-date, though InvestingPro analysis suggests the company is currently undervalued based on its Fair Value estimate. The focus is on lorundrostat, a treatment for uncontrolled or resistant hypertension (u/rHTN), with pivotal study results expected from the ADVANCE-HTN trial in March and the LAUNCH-HTN trial in mid-first half of 2025. An additional study, EXPLORE-CKD, is set to follow in the second quarter of 2025, targeting chronic kidney disease (CKD) patients with hypertension (HTN).
The firm highlighted that Mineralys Therapeutics’ stock has been under pressure as investors await the trial outcomes, which will be critical in determining the drug’s regulatory and commercial viability. With a market capitalization of $510 million and a strong liquidity position evidenced by a current ratio of 14.02, InvestingPro data reveals the company holds more cash than debt on its balance sheet, though it is currently burning through cash rapidly. Stifel analysts suggest that a reduction in blood pressure of between 8 to 10 mmHg could be seen as a success, with the potential for even greater effects in certain subpopulations of patients.
The report by Stifel outlines various potential outcomes of the clinical trials, the commercial implications of these outcomes, and the expected impact on the company’s stock. Analysts at the firm have underscored their confidence in lorundrostat’s potential for clinical and regulatory success, emphasizing that the drug’s market potential will largely depend on its performance in specific patient groups. This optimism is reflected in the broader analyst consensus, with InvestingPro showing a strong buy recommendation and price targets ranging from $24 to $45. For deeper insights into MLYS’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Stifel analysts have reiterated their confidence in the design of Mineralys Therapeutics’ clinical trials, which they believe are well-structured to identify the drug’s efficacy in targeted populations. The reaffirmation of the $45 price target reflects the firm’s optimistic stance on the company’s prospects and the anticipated positive data from the upcoming clinical studies.
In other recent news, Mineralys Therapeutics reported a notable miss in its earnings per share (EPS) for the fourth quarter of 2024, with an EPS of -0.98 compared to the anticipated -0.71. This shortfall highlights the challenges faced by the company, primarily due to increased research and development expenses that contributed to a net loss of $177.8 million for the year. Despite this, Mineralys maintains a robust cash position with $198.2 million in cash and investments, expected to support operations through the first quarter of 2026. The company is advancing pivotal trials for lorondristat, its lead candidate for treating hypertension, with key data expected in 2025.
Mineralys has not reported revenue for the fourth quarter, but its focus remains on its innovative product pipeline. Analysts and investors are closely watching the company’s progress, especially with upcoming trial results. The company is also exploring additional indications for lorondristat, including chronic kidney disease and obstructive sleep apnea. Despite the earnings miss, the stock showed resilience, suggesting continued investor confidence in Mineralys’ strategic focus and potential market impact.
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