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Lexeo Therapeutics Inc. (LXEO) stock has tumbled to a 52-week low of $2.31, now trading at $2.45, as the company grapples with a significant downturn over the past year. According to InvestingPro analysis, the company appears undervalued despite its challenges, with strong liquidity indicated by a current ratio of 5.52. The biotechnology firm, which specializes in gene therapy treatments, has seen its shares plummet, reflecting an alarming one-year change of -81.22%. With a current market capitalization of $87.64 million, investors have been wary as the company faces challenges that have severely impacted its market valuation. While InvestingPro data shows the company holds more cash than debt, it’s also quickly burning through its cash reserves. The steep decline over the past year has raised concerns among stakeholders about the company’s future performance and strategic direction. Discover 11 additional key insights about LXEO with an InvestingPro subscription, including detailed analysis in the comprehensive Pro Research Report.
In other recent news, Lexeo Therapeutics reported a fourth-quarter loss of $0.78 per share, missing analyst estimates of a $0.72 loss. Despite this, the company revealed positive interim data from its clinical trials, notably a 71% and 115% increase in PKP2 protein expression from its LX2020 HEROIC-PKP2 Phase 1/2 trial. Lexeo also announced a 67% reduction in premature ventricular contractions in one participant six months post-dosing. The company received favorable updates from the FDA regarding its LX2006 program for Friedreich’s ataxia cardiomyopathy, with a focus on frataxin protein expression as a regulatory endpoint. H.C. Wainwright reaffirmed a Buy rating on Lexeo with a $23 price target, emphasizing advancements in the LX2006 trial protocol. Meanwhile, Leerink Partners adjusted Lexeo’s price target to $18, maintaining an Outperform rating, citing potential in Lexeo’s PKP2 gene therapy program. Lexeo completed cohort 2 enrollment in the LX2020 trial and plans an interim data update in the second half of 2025. The company concluded 2024 with $128.5 million in cash and investments, projecting operational funding through 2027.
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