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On Friday, H.C. Wainwright reaffirmed its Buy rating and $75.00 price target for Aligos Therapeutics Inc. (NASDAQ: ALGS), following the announcement of positive clinical trial results. The company disclosed that its Phase 2a HERALD study in metabolic-associated steatohepatitis (MASH) achieved its primary endpoint, with three out of four ALG-055009 dose groups demonstrating statistically significant liver fat reductions compared to a placebo.
The HERALD study, a randomized, double-blind, placebo-controlled trial, assessed the efficacy of ALG-055009, Aligos' thyroid hormone receptor beta (THR-β) agonist. The results indicated that doses ranging from 0.5 mg to 0.9 mg led to placebo-adjusted median relative liver fat reductions of up to 46.2%, as measured by MRI-PDFF at Week 12.
The analyst from H.C. Wainwright expressed surprise at the market's reaction to the data, considering the results to be an overall positive dataset. The firm's confidence in the stock is reflected in the maintained price target and rating.
Further insights from the HERALD study are expected to be unveiled at the AASLD The Liver Meeting, scheduled for November 15-19, 2024. This event is anticipated to be the next significant milestone for the ALG-055009 program as per the conversation with Aligos' management. The firm's stance on the stock remains firm, with an affirmed Buy rating and a $75 price target.
In other recent news, Aligos Therapeutics announced positive results from its Phase 2a HERALD study on ALG-055009, a drug intended for the treatment of metabolic-dysfunction associated steatohepatitis (MASH). The study demonstrated significant reductions in liver fat content after a 12-week treatment period. Furthermore, Aligos reported promising Phase 1 results for its pan-coronavirus protease inhibitor, ALG-097558.
In the analyst sphere, Piper Sandler reaffirmed its Overweight rating for Aligos, emphasizing the potential of ALG-000184, a candidate for chronic hepatitis B treatment. Similarly, H.C. Wainwright initiated coverage on Aligos Therapeutics with a Buy rating, highlighting the potential of ALG-055009 in a Phase 2a study and ALG-000184 in a Phase 1b trial.
In corporate developments, Aligos has regained compliance with Nasdaq's minimum bid price requirement, averting the risk of delisting. The company is also considering various funding options for further development of ALG-055009 and plans to prepare for a Phase 2b study by mid-2025.
InvestingPro Insights
Aligos Therapeutics Inc. (NASDAQ: ALGS) has recently shown promising results in its Phase 2a HERALD study, which is reflected in the maintained Buy rating and $75.00 price target by H.C. Wainwright. When considering the financial data and expert analysis from InvestingPro, the company's market capitalization stands at a modest $62.76M, and it holds a Price / Book ratio of 1.3 as of the last twelve months ending Q2 2024. Despite the positive clinical outcomes, Aligos Therapeutics is trading at a low revenue valuation multiple, which could indicate a potential undervaluation of the stock at its current price of $10.18.
InvestingPro Tips highlight that Aligos holds more cash than debt, which is a positive sign of financial stability. However, it is also important to note that the company is quickly burning through cash and analysts anticipate a sales decline in the current year. The company has not been profitable over the last twelve months, and analysts do not expect it to be profitable this year either. Yet, the stock has demonstrated a strong return over the last three months, with a 36.12% increase. These metrics suggest a mixed financial picture, which investors may want to consider alongside the recent clinical advancements.
It's worth mentioning that there are additional InvestingPro Tips available for Aligos Therapeutics, offering more in-depth analysis for those considering an investment in the company. For further insights and tips on ALGS, including the full list of metrics and analyst targets, visit InvestingPro at: https://www.investing.com/pro/ALGS
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