On Friday, H.C. Wainwright maintained a Buy rating on Astria Therapeutics stock, with a price target of $16.00. The firm's decision follows Astria's announcement of the initiation of a Phase 1a study for STAR-0310, a monoclonal antibody and OX40 antagonist, aimed at treating atopic dermatitis and potentially other conditions. According to InvestingPro data, analyst targets for ATXS range from $16 to $35, suggesting significant upside potential from its current price of $7.55, which is trading near its 52-week low.
Astria Therapeutics, which trades on NASDAQ under the ticker (NASDAQ:ATXS), began the study on January 23, 2025. The trial is set to evaluate the efficacy, safety, and tolerability of STAR-0310 in approximately 40 healthy volunteers. This study is a randomized, double-blind, placebo-controlled single ascending dose study.
Preclinical studies of STAR-0310 have shown promising results, with the drug demonstrating a long half-life, potent binding affinity to the human OX40, and comparable potency to rocatinlimab, which is an OX40 antagonist currently in Phase 3 development for atopic dermatitis. These findings support the potential for STAR-0310 to be a leading OX40 inhibitor for the treatment. The company's strong financial position, with a current ratio of 22.38 and more cash than debt on its balance sheet as revealed by InvestingPro, provides robust support for its development programs.
Astria Therapeutics has outlined its timeline for the development of STAR-0310, expecting early proof-of-concept results from the trial in the third quarter of 2025. Further data from atopic dermatitis patients is projected to be available in the second quarter of 2026.
H.C. Wainwright sees a significant commercial market opportunity for Astria Therapeutics. The firm anticipates that the upcoming news flow from the trials will be substantial, providing Astria with the chance to expand its pipeline and foster strategic growth. The reaffirmed Buy rating and $16 price target reflect the firm's confidence in the potential of STAR-0310 and Astria's overall growth prospects. While the company currently shows an overall FAIR financial health score on InvestingPro, investors should note that the platform has identified 8 additional key investment tips for ATXS that could be crucial for making informed investment decisions.
In other recent news, Astria Therapeutics has been making significant advancements in its drug development programs. The company announced its ALPHA-ORBIT Phase 3 clinical trial for navenibart, a treatment for hereditary angioedema (HAE). This follows positive results from its Phase 1b/2 ALPHA-STAR trial. Furthermore, Astria expanded its 2022 Inducement Stock Incentive Plan, increasing the number of shares reserved for issuance to attract and retain top talent.
Astria's new drug for atopic dermatitis (AD) has also been cleared by the FDA for trial, with initiation expected in 2026. Analyst firms TD Cowen and H.C. Wainwright have maintained their Buy ratings for Astria, while Oppenheimer has raised its stock target for the company, despite a higher than expected second-quarter loss.
These are recent developments in Astria Therapeutics' journey, highlighting its progress in the biotech sector. The company's financial position is reported to be strong, with sufficient funding to carry through the expected top-line Phase 3 results. Astria Therapeutics is dedicated to developing therapies for allergic and immunologic diseases, and its recent advancements underscore its commitment to this mission.
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