On Friday, Jones Trading maintained its Buy rating on Regulus (NASDAQ:RGLS) Therapeutics (NASDAQ:RGLS) with a steady price target of $8.00, representing significant upside from the current trading price of $1.64. The stock has shown strong momentum with an 11.6% gain over the past week.
The firm's analysis followed a fireside chat with Regulus Therapeutics' CEO Jay Hagan and President Preston Klassen, MD, MHS, during the Virtual Genetic Medicine Day. The conversation centered on Regulus's clinical candidate RGLS8429, which is being developed for autosomal dominant polycystic kidney disease (ADPKD).InvestingPro data reveals that analysts maintain a strong bullish consensus on RGLS, with price targets ranging from $3 to $28.
The key points highlighted by Jones Trading from the chat included the ongoing high unmet need in the ADPKD market despite the availability of the approved drug Tolvaptan.
The firm also pointed out that the market potential for ADPKD treatments is not fully recognized. Additionally, Jones Trading expressed the view that achieving a reduction in height-adjusted total kidney volume (htTKV) in a large pivotal study could be significantly beneficial for the company, particularly given its current market capitalization of $107.4 million.
Regulus Therapeutics is on schedule for an End of Phase 1 (EOP1) meeting with the FDA by the end of 2024, with plans to possibly start a pivotal study in 2025. The company also anticipates releasing fixed-dose Phase 1 data in early 2025. Financially, Regulus is reported to have cash reserves of $87.3 million, which is expected to fund operations into the first half of 2026.
According to InvestingPro, the company maintains a strong liquidity position with a current ratio of 14.14 and more cash than debt on its balance sheet, though it is currently burning through cash rapidly.The reiteration of the Buy rating and the $8 price target reflects confidence in the company's prospects and its strategic approach towards developing its ADPKD treatment. InvestingPro subscribers have access to 10+ additional insights about RGLS's financial health and market performance.
In other recent news, Regulus Therapeutics has secured an exclusive license from The University of Texas System for patents and technology aimed at treating autosomal dominant polycystic kidney disease.
The agreement includes initial payments, milestone payments for clinical, regulatory, and commercial achievements, as well as tiered royalties on net sales of licensed products. Additionally, the company has made significant strides in its clinical trials, completing patient enrollment for a Phase 1b study of RGLS8429, with topline data expected in early 2025.
Analyst firms H.C. Wainwright and Canaccord Genuity have both maintained Buy ratings on Regulus Therapeutics, indicating confidence in the company's ongoing projects.
Regulus Therapeutics is also preparing for an end-of-Phase 1 meeting with the FDA, anticipated to occur near the end of 2024, which is expected to finalize the design for a pivotal Phase 2/3 trial in 2025. Notably, the company's anti-miRNA-17 therapy, currently in Phase 1b development for Autosomal Dominant Polycystic Kidney Disease, has shown early signs of safety and efficacy.
In other recent developments, the company disclosed additional exploratory results from its Phase 1b study of RGLS8429, which consistently impacted the height-adjusted total kidney volume across high-risk classes. These developments, along with the Nobel Prize awarded to Victor Ambros and Gary Ruvkun for their work on microRNA, a field closely related to Regulus's therapy, underline the potential of the company's ongoing clinical efforts.
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