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On Thursday, CG Capital maintained a positive stance on Achieve Life Sciences (NASDAQ:ACHV), reiterating an Outperform rating and a $14.00 price target for the company's stock. Achieve Life Sciences is focusing its efforts on combating the worldwide nicotine addiction problem with cytisinicline, its leading product candidate aimed at helping individuals quit smoking and vaping.
The company's second-quarter financial results for 2024 reflect its commitment to reaching significant regulatory benchmarks, particularly the expected submission of cytisinicline for FDA approval. CG Capital highlighted the product's strong performance in late-stage clinical trials, emphasizing its efficacy and safety. The firm also noted Achieve Life Sciences' clear strategy for bringing the product to market.
According to CG Capital, Achieve Life Sciences is well-prepared to secure a considerable portion of the market in the smoking and vaping cessation space. The analyst's statement underlined the company's potential, "Achieve Life Sciences remains committed to addressing the global nicotine addiction crisis through its lead asset, cytisinicline, a novel treatment for smoking and vaping cessation."
The analyst further elaborated on the company's readiness to move forward, pointing out the strength of the financial results and the strategic approach to commercialization. "The company's 2Q24 financial results underscore its readiness to progress toward key regulatory milestones, particularly the anticipated FDA submission for cytisinicline."
CG Capital's continued support for Achieve Life Sciences is reflected in the reiterated Outperform rating and the maintained $14.00 price target, suggesting confidence in the company's trajectory and its ability to navigate the regulatory landscape successfully.
In other recent news, Achieve Life Sciences has seen significant developments. The company reported a net loss of $8.5 million for the quarter, despite holding $61.3 million in cash and investments. As part of a strategic move, Achieve Life Sciences has refinanced its debt with Silicon Valley Bank, extending the maturity date to December 2027.
In addition, there have been substantial changes in the company's executive leadership. Richard Stewart has taken over as CEO and Thomas B. King has been appointed as Executive Chairman. This transition aims to leverage the company's potential in licensing and commercial partnerships, particularly as they continue to prioritize their smoking cessation drug, cytisinicline.
Analysts from Jones Trading have reiterated their Buy rating and $20.00 price target on Achieve Life Sciences following these developments. The company's cytisinicline program has also received FDA breakthrough therapy designation for treating nicotine dependence from e-cigarettes. A New Drug Application for smoking cessation is expected to be submitted in the first half of 2025.
InvestingPro Insights
Recent data from InvestingPro adds depth to CG Capital's positive outlook on Achieve Life Sciences (NASDAQ:ACHV). The company's stock has shown strong momentum, with a 15.01% price return over the past month and a 20.87% return year-to-date. This performance aligns with the analyst's optimistic stance and $14 price target.
InvestingPro Tips highlight that ACHV holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations. These factors could be crucial as the company approaches key regulatory milestones, particularly the anticipated FDA submission for cytisinicline.
However, it's important to note that ACHV is not currently profitable, with a negative operating income of $25.37 million over the last twelve months. This aligns with the InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for ACHV, providing a deeper understanding of the company's financial health and market position.
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