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Investing.com - BTIG raised its price target on Stoke Therapeutics (NASDAQ:STOK) to $39.00 from $28.00 on Monday, while maintaining a Buy rating following positive clinical data for the company’s Dravet Syndrome treatment. The stock, which has surged over 330% in the past six months, currently trades near its 52-week high of $32.40. According to InvestingPro data, four analysts have recently revised their earnings estimates upward for the upcoming period.
The upgrade follows recent CNS Meeting presentations showing promising results for zorevunersen, with some non-seizure effects demonstrating improvements relative to baseline compared to natural history patients on standard care. BTIG noted these non-seizure benefits are unique to zorevunersen and support potential for faster approval. With a strong current ratio of 6.98 and more cash than debt on its balance sheet, InvestingPro analysis indicates the company is well-positioned to support its development programs.
The 36-month data for the lower dose arm showed significant reductions in seizure burden with signs of disease modification that increased over time and appeared to accelerate in the third year. The data came from approximately 75 patients across both dosing arms, which BTIG believes could be sufficient to support approval.
BTIG highlighted that zorevunersen’s gradual improvement in non-seizure symptoms is particularly notable given that models suggest patients who have missed key developmental milestones might be unable to achieve them. This contrasts with Fintepla, where only about one in eight patients show benefits for symptoms beyond seizures.
Stoke Therapeutics management is reportedly planning to leverage the drug’s Breakthrough Therapy Designation to discuss the data with the FDA and explore expedited access for patients. BTIG estimates that reducing the development timeline by two years could increase their price target to above $50. With an "EXCELLENT" Financial Health score from InvestingPro and analysts projecting sales growth this year, investors seeking deeper insights can access 18 additional ProTips and comprehensive valuation metrics through InvestingPro’s detailed research report.
In other recent news, Stoke Therapeutics has announced significant developments that may interest investors. The company presented new clinical data for zorevunersen, a treatment for Dravet syndrome, showing durable seizure reduction and improvements in cognition and behavior over a three-year period. This data was shared at the 36th International Epilepsy Congress, indicating potential advancements in patient care. Following this, Needham raised its price target for Stoke Therapeutics to $35 from $22, maintaining a Buy rating, based on positive trial data. Additionally, Stoke Therapeutics appointed Ian F. Smith as its permanent Chief Executive Officer. Smith has been serving as interim CEO since March and will continue to be a member of the Board of Directors. Arthur Tzianabos will return to his role as Chairman of the Board. These developments reflect ongoing strategic and operational changes within the company.
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