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In a challenging year for 4D Molecular Therapeutics, the biotech company’s stock has tumbled to a 52-week low, with shares dropping to $3.46. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 14.92 and more cash than debt on its balance sheet. This latest price level reflects a stark contrast to the more optimistic valuations the company has seen in the past. Over the past year, 4D Molecular Therapeutics has experienced a precipitous decline, with its stock value eroding by -88.64%. Despite this downturn, analysts project revenue growth of 53% for the current year, and InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels. This significant downturn has left investors and analysts closely monitoring the company’s performance and potential strategies to regain its footing in the competitive biotech sector.
In other recent news, 4D Molecular Therapeutics has shared positive interim results from a Phase 2b trial for its 4D-150 gene therapy targeting wet age-related macular degeneration (wAMD). The data indicated a significant reduction in the need for supplemental aflibercept injections, with 57% of patients remaining injection-free after 52 weeks. Jefferies adjusted its price target for 4D Molecular Therapeutics to $40 from $51, maintaining a Buy rating, while H.C. Wainwright reaffirmed a Buy rating with a $36 target. Conversely, Leerink Partners reduced its target to $27, citing pipeline updates, and BMO Capital Markets downgraded the stock to Market Perform, setting a $15 target due to concerns about the market reach of 4D-150.
The company plans to initiate two Phase 3 trials in 2025, with topline results expected in the second half of 2027. Despite positive trial outcomes, BMO Capital highlighted challenges for 4D-150, noting its limited effectiveness in non-newly diagnosed patients. Additionally, 4D Molecular Therapeutics has $506 million in cash, which extends its financial runway into 2028, supporting its 4FRONT program. Analysts have expressed varying levels of optimism, with some emphasizing the potential for improved patient outcomes, while others remain cautious about the competitive landscape and future data readouts. The company’s focus on wAMD and diabetic macular edema, alongside its cystic fibrosis program, reflects strategic resource allocation in its pipeline.
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