On Thursday, Jones Trading adjusted its price target on shares of CalciMedica (NASDAQ:CALC), a biopharmaceutical company, reducing it to $15.00 from the previous $22.00 while maintaining a Buy rating. The downward revision follows the announcement of Phase 2b trial results for the company's drug, Auxora, which is being developed for the treatment of acute pancreatitis (AP).
The primary endpoint of the trial was achieved in a specific subset of patients with elevated hematocrit levels. However, the overall trial results were mixed due to a significant percentage of patients experiencing rapid disease resolution with the standard of care, which has led to a negative reaction in the stock market.
According to Jones Trading, the mixed trial outcomes are often viewed unfavorably in the current biotech market environment. Despite the challenges, there is a positive outlook for the drug within the subgroup of patients with elevated hematocrit. Key opinion leaders (KOLs) in the field have expressed a strong interest in adopting new therapies for AP, which supports the continued Buy rating on CalciMedica's stock.
The company had initially aimed for more stringent inclusion criteria for the trial but expanded the patient population in response to a request from the FDA. While the results have prompted a reassessment of the potential market for Auxora, limiting the expected patient demographic to those with both systemic inflammatory response syndrome (SIRS) and elevated hematocrit, Jones Trading remains optimistic about the drug's prospects.
The analyst also noted that there is no negative implication for the ongoing KOURAGE study for acute kidney injury, which is a significant component of CalciMedica's valuation. Further details on the enrollment criteria and primary endpoints for the next phase of trials are anticipated to provide additional clarity. The revised price target reflects the narrowed market expectation while reiterating confidence in the company's stock with a Buy rating.
In other recent news, biopharmaceutical company CalciMedica reported positive results from its Phase 2b CARPO trial of Auxora™ in patients with acute pancreatitis and systemic inflammatory response syndrome. The trial demonstrated a significant reduction in time to solid food tolerance and severe organ failure versus placebo. The company plans to swiftly advance to a Phase 3 trial and engage with the FDA.
Simultaneously, CalciMedica is making progress in its clinical studies of Auxora for treating acute kidney injury, with the Phase 2 KOURAGE trial set to begin enrollment soon. Analyst firm Oppenheimer maintained its Outperform rating on CalciMedica, emphasizing the commercial potential of Auxora in treating acute pancreatitis, with a price target of $14.00. Jones Trading reiterated its Buy rating and $22.00 stock price target for CalciMedica, following meetings with investors and the company's management team.
These recent developments highlight CalciMedica's ongoing commitment to advancing its clinical trials and developing effective treatments for acute inflammatory and immunologic illnesses. As the company moves forward, it continues to receive positive feedback from analysts and maintains a strong focus on its research and development efforts.
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