On Tuesday, Jefferies analyst Akash Tewari adjusted the price target on Third Harmonic (NASDAQ:HLIT) Bio (NASDAQ:THRD) to $7.00, a significant reduction from the previous target of $15.00. The adjustment comes as the stock, currently trading at $5.97, has fallen over 40% in the past week and is near its 52-week low.
Despite the change in the price target, the Hold rating on the company's stock was maintained. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 42.5x and holds more cash than debt. Tewari's assessment followed positive Phase 1 data released by Blueprint Medicines (NASDAQ:BPMC) Corporation concerning its oral wt-KIT BLU-808 in healthy volunteers.
The analyst highlighted several key takeaways from Blueprint Medicines' report. Firstly, pharmacokinetic data suggested that BLU-808 could be administered once daily (QD) and appeared to be more potent than Third Harmonic's THB001. Secondly, BLU-808 demonstrated a dose-dependent decrease in serum tryptase levels, which was seen as competitive when compared to Third Harmonic's '001 and Barzolvolimab for up to two weeks.
Lastly, the stability of neutrophil counts across various doses of BLU-808 and the absence of significant changes in AST/ALT levels were noted as positive indicators. With a market capitalization of $294 million, Third Harmonic faces significant competitive pressures. InvestingPro subscribers have access to 13 additional investment tips and comprehensive analysis for THRD.
The price target adjustment by Jefferies comes ahead of Third Harmonic Bio's own anticipated Phase 1 data release for its oral c-KIT inhibitor, THB335, expected in the first quarter of 2025. This upcoming data will provide further insights into the company's position within the competitive landscape. The company's next earnings report is scheduled for March 26, 2025, which analysts will closely monitor given the projected decline in net income for the year.
In other recent news, Third Harmonic Bio has been the focus of significant attention due to its ongoing early-stage study of THB335, a drug designed to treat urticaria, also known as chronic hives. The study results are expected to be released soon. Stifel has maintained its Buy rating on the biotech company, with a steadfast price target of $23.00, highlighting the anticipated readout from their Phase 1 study of THB335. In parallel, Morgan Stanley (NYSE:MS) upgraded its stock rating for Third Harmonic Bio from Equalweight to Overweight, raising its price target to $20.00.
In the broader biotech sector, TD Cowen, through its analyst Joseph Thome, has outlined ten anticipated catalysts for the year 2025 that are expected to generate significant investor interest. These include a range of clinical trial data releases and regulatory milestones across the firm's coverage universe. The firm also provided a supplementary list of other potential catalysts to monitor, which includes readouts from various biotech companies.
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