On Thursday, Inozyme Pharma Inc. (NASDAQ:INZY), currently trading at $2.96, received a positive outlook from Jefferies, as the firm initiated coverage with a Buy rating and set a price target of $26.00. According to InvestingPro data, analysts maintain a strong bullish consensus on the stock, with price targets ranging from $12 to $43. The coverage comes with a strong endorsement of Inozyme's lead drug candidate, INZ-701, which is currently undergoing clinical trials.
INZ-701 is a biologic analog of the ENPP1 enzyme and is being developed for orphan disorders that are characterized by low levels of pyrophosphate (PPi), a crucial regulator of mineralization in the human body. The Phase 2 studies of INZ-701 have shown promising results, including the rapid normalization of PPi levels in adults deficient in ENPP1 and ABCC6 enzymes, along with significant improvements in several exploratory endpoints. While the company's EBITDA stands at -$98.89M, InvestingPro data shows it maintains a healthy balance sheet with more cash than debt and a strong current ratio of 7.68.
These disorders are associated with increased mortality and morbidity rates, particularly among younger individuals, and currently have no approved treatments. The anticipation around INZ-701 is heightened by the scheduled readout of topline data (ENERGY-1) in both ENPP1 and ABCC6 infants, expected in the fourth quarter of 2024. This demographic represents the highest unmet need within the target population.
Furthermore, the success of the ENERGY-1 study is expected to influence the ongoing pivotal study in pediatric patients (ENERGY-3), with topline results anticipated in early 2026. In addition, there are plans to initiate a pivotal infant ENPP1 study (ENERGY-2) with the European Medicines Agency (EMA) in the fourth quarter of 2024. Despite recent market volatility, the stock has shown resilience with a 19.35% gain over the past week, though investors should note the company's market capitalization remains modest at $190.15M.
Jefferies highlighted the potential of INZ-701 to replicate the success of other orphan blockbusters such as Strensiq and Crysvita, based on the strong data already in-hand. This potential is further supported by effective patient identification efforts, which include the inclusion of the treatment in newborn screening programs.
In other recent news, Inozyme Pharma Inc. has seen several significant developments. The company's third-quarter update revealed plans to release interim data from the ENERGY Phase 1b trial in the fourth quarter of 2024, with top-line results from the ENERGY 3 trial expected in early 2026. Piper Sandler has raised its target for Inozyme Pharma to $43, maintaining an Overweight rating on the company's shares.
Inozyme Pharma has also reported positive interim data from its Phase 1 SEAPORT 1 trial of INZ-701, a therapy for patients with end-stage kidney disease. This data reveal increased plasma pyrophosphate levels, a key factor in reducing the risk of calciphylaxis. The company plans to initiate a registrational trial for INZ-701 in calciphylaxis patients in 2025, pending regulatory approval and funding.
In addition, Inozyme Pharma has appointed Erik Harris to its Board of Directors and announced approximately $23.8 million remaining in its at-the-market equity offering program, facilitated by Jefferies LLC. Analysts from firms such as Stifel, Jefferies, H.C. Wainwright, BofA Securities, and Wells Fargo (NYSE:WFC) have maintained a positive outlook on Inozyme, with Stifel initiating coverage with a Buy rating and a set price target of $16.00, and H.C. Wainwright reiterating a Buy rating and a $14.00 price target.
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