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On Wednesday, H.C. Wainwright adjusted its price target for Longboard Pharmaceuticals Inc (NASDAQ:LBPH), increasing it to $80 from the previous $60, while maintaining a Buy rating on the stock. This adjustment followed Longboard's recent Investor & Analyst Day, which took place on Monday, where the company presented detailed information about its developmental and epileptic encephalopathies (DEEs) treatment program.
The company's focus during the event was on bexicaserin (LP352), an oral medication designed to be a highly selective superagonist for the 5-HT2C receptor subtype. Longboard elaborated on its Phase 3 DEE program, which includes DEEp OCEAN, DEEp SEA, and DEEp OLE studies. Notably, the program has been expanded to cover a broader range of DEEs than previously anticipated.
The expansion of Longboard's DEE program is a strategic shift from the earlier approach that targeted individual indications. The firm's decision to modify its development strategy came after end-of-Phase 2 discussions with the FDA and the receipt of Breakthrough Therapy Designation (BTD) on July 1. This designation is expected to facilitate the drug's development and review process, potentially accelerating its path to market.
According to H.C. Wainwright, the broader scope of the DEE treatment program and the enhanced understanding of the conditions, supported by regulatory developments, have provided a solid basis for the increased price target. The firm reiterated its confidence in the stock with a continued Buy rating, reflecting a positive outlook on Longboard's progress and potential in the DEE treatment landscape.
In other recent news, Longboard Pharmaceuticals has been under the analytical microscope, with Baird maintaining an Outperform rating and a steady price target of $60.00 for the company's stock. This follows Longboard's detailed plans for phase 3 trials of its drug candidate, bexicaserin, a potential treatment for Developmental and Epileptic Encephalopathies (DEEs). The phase 3 clinical trial is expected to start around the end of September, with top-line results anticipated by the end of 2026.
Truist Securities also initiated coverage on Longboard with a Buy rating, setting a price target of $60. The firm's analysis suggests that bexicaserin could outperform the current market leader in epilepsy treatment. In addition to bexicaserin, Longboard is developing a second asset, LP659, which is an S1P modulator targeting CNS and inflammation and immunity indications.
The FDA's Breakthrough Therapy designation for bexicaserin prompted Baird to raise its price target for Longboard from $36 to $60. Citi also increased its price target from $40 to $45, maintaining a Buy rating, following the FDA's approval of a Phase 3 study for bexicaserin.
Finally, Longboard plans to initiate a Phase 3 program by the end of 2024 and expects Phase 1 data for another therapeutic candidate, LP659, in the second quarter of 2024. These are the recent developments that highlight Longboard's potential to address significant unmet needs in epilepsy treatment.
InvestingPro Insights
As Longboard Pharmaceuticals Inc (NASDAQ:LBPH) continues to navigate the development of its DEE treatment program, investors may find it beneficial to consider some real-time data and insights from InvestingPro. Currently, Longboard holds a market capitalization of $1.07 billion and has experienced significant volatility with a year-to-date total return of 357.38%, reflecting a dynamic market perception of the company's potential.
InvestingPro Tips highlight that Longboard has more cash than debt on its balance sheet, which could provide financial flexibility for its ongoing clinical programs. However, analysts have tempered expectations, with four analysts revising their earnings downwards for the upcoming period, signaling potential concerns about the company's near-term profitability. Despite these revisions, Longboard's stock has shown resilience with a strong return over the last three months, indicating investor optimism in specific aspects of the company's performance.
For those seeking more in-depth analysis, InvestingPro offers additional tips on Longboard Pharmaceuticals, which can be accessed through the platform. With these insights, investors can better gauge the company's financial health and make more informed decisions.
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