These are top 10 stocks traded on the Robinhood UK platform in July
On Friday, TD Cowen initiated coverage on Grace Therapeutics (NASDAQ:GRCE) with a Buy rating and a price target set at $12.00. Currently trading at $2.71, the stock appears undervalued according to InvestingPro analysis, with analysts setting an average price target between $11.16 and $12.84. The firm’s decision is based on positive Phase III clinical trial results for GTx-104, Grace Therapeutics’ investigational treatment for aneurysmal subarachnoid hemorrhage (aSAH), a condition that currently uses nimodipine as the standard of care.
According to TD Cowen’s analysis, there is a significant unmet medical need for an intravenous (IV) formulation of a treatment that can optimize dosing and potentially offer improved tolerability to maximize patient outcomes. GTx-104 is being considered as a promising alternative that could meet this need. With a strong current ratio of 6.06 and cash reserves exceeding debt, InvestingPro data shows Grace Therapeutics is well-positioned to fund its development programs.
The current standard treatment, nimodipine, is administered orally, and the development of an IV formulation like GTx-104 could represent a significant advancement in the treatment of aSAH. The analyst at TD Cowen highlighted the potential of GTx-104 to become a welcome addition to the range of treatments available for this serious condition.
Grace Therapeutics’ focus on developing innovative treatments for diseases with considerable unmet needs appears to have garnered the confidence of TD Cowen, as reflected in their optimistic price target and Buy rating. The coverage initiation by the firm suggests a positive outlook for the company’s stock performance based on the clinical advancements of its lead product candidate.
The price target of $12.00 set by TD Cowen indicates a robust expectation of growth for Grace Therapeutics stock, considering the potential market impact of GTx-104 should it gain approval and be introduced as a new treatment option for aSAH. With a market capitalization of $37.18 million and a recent one-week return of 8.84%, the company has shown positive momentum. InvestingPro subscribers can access additional insights, including 8 more key tips about Grace Therapeutics’ financial outlook and growth potential. The analyst’s comment underscores the importance of GTx-104’s clinical results and the anticipation for its role in improving treatment outcomes for patients with aneurysmal subarachnoid hemorrhage.
In other recent news, Grace Therapeutics has announced positive outcomes from its Phase 3 STRIVE-ON safety trial for GTx-104, an intravenous formulation of nimodipine. The trial, which included 102 patients with aneurysmal subarachnoid hemorrhage (aSAH), met its primary endpoint by demonstrating a 19% reduction in hypotension episodes compared to oral nimodipine. Furthermore, 54% of patients treated with GTx-104 achieved a relative dose intensity of 95% or higher, compared to 8% in the oral group. Grace Therapeutics plans to submit a New Drug Application (NDA) for GTx-104 in the first half of 2025. H.C. Wainwright has reiterated its Buy rating for Grace Therapeutics, maintaining a $12 price target, citing the favorable safety profile and potential market advantages of GTx-104. Additionally, Grace Therapeutics has secured up to $30 million in financing to support the pre-commercial development of GTx-104 and general corporate purposes. The initial $15 million has been received, with potential for an additional $15 million through warrants. The company’s financing is led by Nantahala Capital and ADAR1 Partners, LP, with participation from other healthcare-focused investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.