Figma Shares Indicated To Open $105/$110
On Friday, H.C. Wainwright maintained a bullish stance on Oncolytics Biotech (NASDAQ:ONCY) shares, reiterating a Buy rating and a $5.00 price target for the company's shares. The firm's positive outlook is based on recent Phase 2 survival data for pelareorep, a therapeutic candidate for advanced breast cancer, which may pave the way for a registration-enabling program.
On Thursday, September 19, Oncolytics Biotech announced favorable overall survival results from its Phase 2 BRACELET-1 trial. The trial assessed pelareorep, an oncolytic viral agent, in combination with chemotherapy for patients with HR+/HER2- metastatic breast cancer (mBC). The combination treatment yielded a median overall survival (mOS) of at least 32 months, an estimate that has not yet been reached, in contrast to 18 months for the chemotherapy-only group.
The Phase 2 data align with prior results from the Phase 1/2 IND-213 trial, where the pelareorep and chemotherapy combo nearly doubled the mOS in mBC cases. These cumulative findings bolster the firm's confidence in a potential registration-enabling program for pelareorep in mBC. Such a program could facilitate an accelerated approval process, potentially leading to a quicker realization of value for Oncolytics Biotech shareholders.
H.C. Wainwright's reiterated Buy rating and price target reflect an anticipation that the positive trial outcomes will contribute to the company's near-term growth. The data from the BRACELET-1 trial supports the analyst's view that pelareorep has a clear path toward a registration-enabling program, which could be a significant milestone in the treatment of metastatic breast cancer and for Oncolytics Biotech's future prospects.
In other developments, Sernova Corp. has appointed Jonathan Rigby as its new Chief Executive Officer. Rigby's experience in leading biotech firms and raising equity capital is expected to guide the company towards achieving strategic milestones. Sernova is currently conducting a phase 1/2a clinical trial for type 1 diabetes and is developing its Cell Pouch System™, a potential 'functional cure' for insulin-dependent diabetes.
Oncolytics Biotech's recent operational highlights and financial results for Q2 2024 revealed a robust cash position of $24.9 million, with a cash runway extending into 2025. The company is set to report pivotal overall survival results from the BRACELET-1 trial later in the year. Oncolytics Biotech remains committed to improving cancer treatment options, focusing on advancing pelareorep toward potential registrational studies.
InvestingPro Insights
In the wake of H.C. Wainwright's optimistic stance on Oncolytics Biotech, real-time data from InvestingPro provides a nuanced perspective on the company's financial health and market performance. Notably, Oncolytics Biotech holds a market capitalization of approximately $73.26 million, which reflects the market's current valuation of the company.
Despite the promising clinical results, the company's P/E ratio stands at -3.42, indicating that it is not currently profitable. Moreover, with an adjusted P/E ratio for the last twelve months as of Q2 2024 at -3.54, the market does not project near-term earnings growth.
InvestingPro Tips also reveal critical insights: Oncolytics Biotech has more cash than debt on its balance sheet, which is a positive sign of financial stability. However, the company is quickly burning through cash and has weak gross profit margins. Analysts, as noted by InvestingPro, do not anticipate the company will be profitable this year.
Moreover, while the company's liquid assets exceed its short-term obligations, suggesting good liquidity, Oncolytics Biotech is trading near its 52-week low and has not been profitable over the last twelve months. This context is particularly relevant for investors considering the company's potential for long-term value creation.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips on Oncolytics Biotech's financials and market performance. With these insights, investors can make more informed decisions about the prospects of Oncolytics Biotech in the context of its recent clinical achievements and financial standing.
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