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On Wednesday, shares of Tourmaline Bio (NASDAQ:TRML), currently trading at $16.20 with a market cap of $416 million, maintained their Buy rating and a $63.00 price target from Truist Securities. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $35 to $70, suggesting significant upside potential. Following the release of Phase 2 data for their drug Paci, intended for use in atherosclerotic cardiovascular disease (ASCVD), the firm has reiterated its positive stance. The data suggests that Paci could potentially offer competitive high-sensitivity C-reactive protein (hs-CRP) reduction with the convenience of quarterly dosing. While the company’s overall financial health score is rated as GOOD by InvestingPro, investors should note that the company is currently burning through cash rapidly.
Truist Securities’ position remains firm despite some investor concerns regarding high placebo response rates observed in the trial. Analysts at the firm have pointed out that similar placebo response rates were noted in Phase 2 studies for Novo Nordisk (NYSE:NVO)’s drugs, RESCUE and RESCUE-2. They emphasized the robust and durable reduction in hs-CRP, an important biomarker for inflammation and cardiovascular risk, as a key takeaway from the trial, rather than the variability in placebo response.
Additionally, the firm conducted a recent Key Opinion Leader (KOL) check, which indicated a 75% probability of success for Novo Nordisk’s upcoming ZEUS trial, with results expected in the first half of 2026. Truist Securities anticipates that a positive outcome from Novo’s trial could bode well for Tourmaline Bio’s program.
In their commentary, Truist Securities also highlighted Tourmaline Bio’s financial position, noting that management has reported sufficient cash to fund operations into the second half of 2027. This extends beyond the expected data readout from Novo Nordisk’s ZEUS trial, potentially positioning Tourmaline Bio favorably for the future. The company’s strong liquidity position is reflected in its current ratio of 33.87, with more cash than debt on its balance sheet. InvestingPro subscribers can access 8 additional key insights about Tourmaline Bio’s financial health and growth prospects, along with detailed valuation metrics and peer comparison tools.
In other recent news, Tourmaline Bio, Inc. has shared positive topline results from its Phase 2 TRANQUILITY trial, which evaluated the drug pacibekitug in patients with elevated high-sensitivity C-reactive protein (hs-CRP) and chronic kidney disease. The trial demonstrated that pacibekitug, an IL-6 inhibitor, achieved rapid, deep, and durable reductions in hs-CRP levels, with a favorable safety profile comparable to placebo. Despite these results, the market reaction was negative, reflecting investor concerns. BMO Capital Markets maintained an Outperform rating on Tourmaline Bio, citing the drug’s potential as a best-in-class option and suggesting that recent market reactions were excessive. Cantor Fitzgerald also reiterated an Overweight rating, highlighting the potential of pacibekitug for treating abdominal aortic aneurysm (AAA), which they view as a significant yet overlooked opportunity. Tourmaline Bio plans to advance pacibekitug into Phase 3 trials for atherosclerotic cardiovascular disease and a Phase 2 trial for AAA in 2025. Investors and analysts will be closely monitoring the company’s progress as it continues its clinical development of pacibekitug.
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