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Silence Therapeutics stock holds price target, rating on positive trial data

EditorNatashya Angelica
Published 21/06/2024, 19:22
SLN
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On Thursday, H.C. Wainwright maintained a Buy rating and a $75.00 price target on shares of Silence Therapeutics (NASDAQ:SLN), following the release of encouraging trial results. The company announced significant findings from their Phase 2 trial of zerlasiran, which is being evaluated for its effectiveness in individuals with elevated levels of lipoprotein(a) at high risk for atherosclerotic cardiovascular disease.

The drug, zerlasiran, showed a profound reduction in lipoprotein(a) levels, approximately 90% from the baseline, in comparison to a placebo over a 48-week period at the end of treatment with the two highest doses tested. Importantly, the study reported no safety concerns, aligning with the expectations set for the drug's performance.

The results from the ALPACAR-360 trial are seen as a strong indicator of zerlasiran's capability to deliver a sustained and significant treatment impact. This positive outcome is anticipated to bolster discussions with the FDA at the conclusion of the Phase 2 trial and could potentially clear the path for a Phase 3 cardiovascular outcomes trial in patients with elevated lipoprotein(a).

Silence Therapeutics' progress with zerlasiran is being closely watched as the company aims to address the needs of patients at high risk of atherosclerotic cardiovascular disease, a condition associated with elevated lipoprotein(a) levels. The successful trial results have reinforced the firm's confidence in the therapeutic's future prospects.

The reiterated price target and rating reflect the firm's continued optimism in Silence Therapeutics' stock, as the company advances through the clinical development stages with its siRNA therapeutic candidate.

In other recent news, Silence Therapeutics, a biotech firm, has reported positive results from its phase 2 study of Zerlasiran, a potential treatment for cardiovascular disease. The study demonstrated a significant reduction in lipoprotein(a) or Lp(a) levels, a genetic risk factor for cardiovascular disease. The company is planning to advance Zerlasiran into phase 3 trials.

In addition, Silence's drug candidate Divesiran, a potential treatment for Polycythemia Vera (PV), has been highlighted by BMO Capital for its market potential. BMO Capital has maintained its "Outperform" rating on Silence Therapeutics, with a price target of $67.00, while H.C. Wainwright & Co maintains a "Buy" rating with a price target of $75.00.

In other organizational news, Silence Therapeutics announced the retirement of board member Alistair Gray. Despite the competitive landscape, Silence Therapeutics maintains a strong cash position, with over $200M expected to last into 2026, enabling continued development and potential commercialization of its therapies. These are recent developments and further updates are anticipated.

InvestingPro Insights

Amidst the optimism surrounding Silence Therapeutics' recent trial results, investors and analysts are closely monitoring the financial health and market performance of the company. According to InvestingPro data, Silence Therapeutics holds a market capitalization of $881.03 million USD, with a notable revenue growth of 14.05% over the last twelve months as of Q1 2024.

This growth is complemented by a gross profit margin of 69.72%, reflecting the company's efficiency in managing its cost of goods sold relative to revenue. Despite these positive indicators, the company's P/E ratio stands at -19.91, highlighting that it is not currently profitable.

InvestingPro Tips provide additional insights, noting that Silence Therapeutics holds more cash than debt on its balance sheet, which could provide a cushion for future operations and investment. However, analysts do not anticipate the company will be profitable this year, and the stock has fared poorly over the last month with a 20.95% decrease in price total return.

On the bright side, the company has seen a high return over the last year, with a 154.03% price total return, demonstrating significant investor confidence over a longer period. Moreover, Silence Therapeutics does not pay a dividend, which could be a factor for income-focused investors to consider.

For those interested in a deeper dive into Silence Therapeutics' financials and market potential, there are additional InvestingPro Tips available. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering you more expert analysis to inform your investment decisions.

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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