Bullish indicating open at $55-$60, IPO prices at $37
On Tuesday, Piper Sandler, a financial services firm, updated its outlook on Inozyme Pharma Inc. (NASDAQ:INZY), increasing its price target to $43.00, up from the previous $40.00, while maintaining an Overweight rating on the company's shares. The adjustment follows Inozyme Pharma's third-quarter update, which was in line with expectations and provided further details on upcoming milestones.
The financial services firm highlighted its continued positive stance on INZY shares after reviewing the company's recent quarterly performance. Inozyme Pharma is expected to release interim data from the ENERGY Phase 1b trial, which is studying treatments for infants with ENPP1 deficiency, in the fourth quarter of 2024. Additionally, top-line results from the ENERGY 3 trial in pediatric patients with ENPP1 deficiency are anticipated in early 2026.
Inozyme Pharma is also preparing for registrational trials for ABCC6 deficiency and calciphylaxis, with the latter having recently shown positive interim Phase 1 results. The commencement of these trials is planned for 2025, pending discussions with regulatory bodies and securing the necessary funding.
The firm's analyst expressed confidence in the potential success of treatments for both ENPP1 and ABCC6 deficiencies. Moreover, the firm sees calciphylaxis as a significant uncalculated benefit that could provide additional value. The analyst stated, "We continue to model success for both ENPP1 and ABCC6, with calciphylaxis as a major unmodeled upside." They further emphasized the potential for substantial growth, noting that even if INZ-701, Inozyme Pharma's lead product candidate, succeeds in just one of these indications, there is still meaningful upside potential.
This is particularly relevant given that the stock is currently trading at less than $5 per share. The firm remains bullish on the stock, encouraging buying at the newly revised target of $43 per share.
In other recent news, Inozyme Pharma has been making significant strides in the biopharmaceutical sector. The company has maintained a positive stance from various analyst firms including H.C. Wainwright, Stifel, Jefferies, BofA Securities, and Wells Fargo (NYSE:WFC). H.C. Wainwright reiterated a Buy rating and a $14.00 price target for the company's shares, while Stifel initiated coverage with a Buy rating and a set price target of $16.00.
Inozyme has reported positive interim data from its Phase 1 SEAPORT 1 trial of INZ-701, a therapy for patients with end-stage kidney disease. The trial's findings indicate that INZ-701 significantly increased plasma pyrophosphate levels, a key factor in mitigating the risk of calciphylaxis. Inozyme plans to initiate a registrational trial for INZ-701 in calciphylaxis patients in 2025, subject to regulatory approval and sufficient funding.
In addition to its clinical developments, Inozyme Pharma has made strategic moves in its leadership with the appointment of Erik Harris to its Board of Directors. Furthermore, the company announced approximately $23.8 million remaining in its at-the-market equity offering program, facilitated by Jefferies LLC.
InvestingPro Insights
InvestingPro data and tips offer additional context to Piper Sandler's optimistic outlook on Inozyme Pharma Inc. (NASDAQ:INZY). Despite the increased price target and potential for growth highlighted in the article, InvestingPro metrics reveal some financial challenges. The company's market cap stands at $257.21 million, with a negative P/E ratio of -2.9, indicating current unprofitability. This aligns with an InvestingPro Tip noting that Inozyme is not profitable over the last twelve months.
Another relevant InvestingPro Tip points out that Inozyme is quickly burning through cash, which could be a concern as the company prepares for registrational trials in 2025. However, it's worth noting that the company holds more cash than debt on its balance sheet, potentially providing some financial flexibility for its upcoming clinical milestones.
The stock's volatility, as mentioned in an InvestingPro Tip, is reflected in its price movements. While the 1-year price total return shows a 38.99% increase, shorter-term returns have been negative, with a -14.51% return over the past month. This volatility may present both risks and opportunities for investors considering Piper Sandler's bullish stance.
For readers interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for Inozyme Pharma, providing a deeper understanding of the company's financial position and market performance.
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