Barinthus Bio retains Buy rating from H.C. Wainwright with trial start

Published 26/09/2024, 15:26
Barinthus Bio retains Buy rating from H.C. Wainwright with trial start

An analyst from H.C. Wainwright maintained a Buy rating and a $5.00 price target on shares of Barinthus Biotherapeutics (NASDAQ: BRNS).

This followed the company's announcement on Wednesday regarding the commencement of the Phase 1 AVALON trial for its drug candidate VTP-1000, which is being tested in adults with celiac disease.

The AVALON trial (NCT06310291) is a randomized, placebo-controlled study designed to assess the safety, tolerability, pharmacokinetics, and pharmacodynamics of VTP-1000.

The study is expected to include 42 participants and will consist of two parts. Initially, there will be a single ascending dose (SAD) segment, which will be followed by a multiple ascending dose (MAD) segment that includes a controlled gluten challenge to determine the effects of VTP-1000.

Celiac disease is an autoimmune disorder triggered by gluten consumption, found in wheat, barley, and rye.

Currently, no pharmaceutical treatments are approved for this condition, and patients must avoid gluten entirely to prevent an autoimmune response that can cause inflammation and damage to the small intestine.

With approximately 2 million individuals affected in the U.S. and 80 million worldwide, the development of VTP-1000 could potentially offer a significant improvement in the quality of life for those living with celiac disease.

VTP-1000 is being developed as an antigen-specific tolerance immunotherapy. It works by delivering gluten-derived peptide antigens along with the immunomodulator rapamycin in nanoparticles to promote immune tolerance to gluten.

In other recent news, Barinthus Biotherapeutics has launched a Phase 1 trial for VTP-1000, an investigational immunotherapy for celiac disease. The trial, named AVALON, is designed to assess the safety and effects of VTP-1000 in adults with celiac disease.

The company has also announced the promotion of Graham Griffiths to Chief Operating Officer as part of an internal restructuring. H.C. Wainwright has revised its price target for Barinthus Biotherapeutics, while maintaining a Buy rating, following strategic adjustments to the company's pipeline.

The firm is now prioritizing the development of VTP-300 for chronic Hepatitis B and VTP-1000 for celiac disease. Additionally, Barinthus Biotherapeutics has reduced its workforce by approximately 25%, a decision expected to extend the company's cash runway into the second quarter of 2026.

The company also welcomed Dr. Leon Hooftman as its new Chief Medical Officer. Lastly, mixed results were reported from the APOLLO trial of VTP-200, a treatment for cervical lesions associated with high-risk HPV infections.


InvestingPro Insights


Following the optimistic outlook from H.C. Wainwright on Barinthus Biotherapeutics (NASDAQ:BRNS), the InvestingPro platform sheds light on some financial metrics and considerations that investors might find pertinent. With a market capitalization of $47.3 million, the company displays a negative P/E ratio, which reflects its lack of profitability in the recent period. The negative gross profit of $43.95 million and operating income of $68.21 million in the last twelve months as of Q2 2024 underscore the financial challenges the company faces.

Despite these financial hurdles, an InvestingPro Tip highlights that BRNS holds more cash than debt on its balance sheet, which could provide some financial flexibility as it progresses with its clinical trials. Another relevant InvestingPro Tip is that the company's liquid assets exceed its short-term obligations, suggesting a degree of near-term financial stability. For investors looking for additional insights, there are over 9 other InvestingPro Tips available, which can be found on the platform and could be useful in evaluating the company's prospects.

While the company's stock has taken a significant hit over the last six months, with a 50% drop, the commencement of the Phase 1 AVALON trial for VTP-1000 could be a pivotal event that shapes the company's trajectory. With the potential to address a market of millions affected by celiac disease, Barinthus Biotherapeutics' scientific advancements may yet influence its financial outcomes in the future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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