On Tuesday, BofA Securities adjusted its outlook on Inozyme Pharma Inc. (NASDAQ: INZY), reducing the price target to $14 from $16, while keeping a Buy rating on the stock. The revision follows the release of topline results from phase 1/2 trials assessing INZ-701 in adult patients with ABCC6 and ENPP1 deficiency.
The data from the trials showed a favorable trend, particularly in treating hallmark comorbidities of ABCC6, such as cardiovascular risk and visual function, in a cohort of ten patients. Management has highlighted these early findings as indicative of a potential pathway forward for the program. However, the limited size of the patient group warrants further data and regulatory feedback.
Inozyme Pharma is planning to focus initially on the pediatric ABCC6 population, with a pivotal trial expected to begin in the first quarter of 2025, provided discussions with regulators yield positive outcomes. The company is considering using an endpoint predictive of cardiovascular risk for an accelerated approval process. The adjusted timeline now anticipates a late-2027 launch for the pediatric ABCC6 treatment in the U.S., with the adult version following in 2028.
The updated price objective reflects the new launch estimates, which have been pushed back from the previous 2026 projection for the pediatric ABCC6 treatment. Despite the adjustment in the price target, BofA Securities reaffirms its Buy rating for Inozyme Pharma. The firm looks forward to additional data updates and potential upside from other programs, including those for calciphylaxis, towards the end of the year.
InvestingPro Insights
In light of the recent developments and analyst adjustments for Inozyme Pharma Inc. (NASDAQ: INZY), it's crucial to consider the company's financial health and market performance. InvestingPro data reveals a market capitalization of $362.6 million and a concerning P/E ratio of -4.26, indicating that investors are facing losses per share. The adjusted P/E ratio for the last twelve months as of Q4 2023 stands at -5.09, further emphasizing the company's lack of profitability during this period.
On the brighter side, Inozyme Pharma holds more cash than debt on its balance sheet, an InvestingPro Tip that suggests some degree of financial stability. However, the company is quickly burning through cash, which could raise concerns about its long-term financial sustainability. Additionally, the stock has experienced significant volatility with a large price uptick over the last six months, showing a 57.37% total return, yet it has taken a hit over the last week with a -15.3% total return.
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