Gene-based therapy company Genprex, Inc (NASDAQ:GNPX) has caught the eye of research firm Dawson James, which has initiated coverage with a Buy rating and $3 target price on the stock.
Genprex is an “emerging” gene therapy platform in oncology and diabetes, analysts at Dawson James noted.
The oncology platform utilizes a non-viral nanoparticle delivery system that encapsulates plasmids that express tumor suppressor genes within lipid nanoparticles and intravenously administered.
READ: Genprex signs exclusive license to additional diabetes technology with University of Pittsburgh
Its REQORSA immunogene therapy, GPX-001, is a plasmid that expresses a tumor suppressor gene TUSC2, that is deleted early during lung cancer development.
Analysts highlighted that REQORSA “appears to have a multimodal mechanism of action whereby it interrupts cell signaling pathways that cause replication and proliferation of cancer cells, reestablishes pathways for apoptosis, or programmed cell death, in cancer cells, and modulates the immune response against cancer cells.”
The treatment has been shown to be complementary with targeted drugs and immunotherapies.
First movers in diabetes trials
Meanwhile, Genprex’s diabetes technology is designed to work by transforming alpha cells in the pancreas into functional beta-like cells, which can produce insulin but are distinct enough from beta cells to evade the body’s immune system, analysts wrote.
The therapy utilizes a procedure in which an adeno-associated virus vector is endoscopically delivered to the pancreas to insert Pdx1 and MafA genes. GPX-002 for T1D uses a glucagon promoter in alpha cells, while GPX003 for T2D uses an insulin promoter in beta cells.
The planned Phase 1 trial “represents the first-ever gene therapy tested in humans for diabetes,” according to analysts.
Dawson James noted that its valuation for Genprex is based on revenue projections out to 2033.
“We know that the markets the company is pursuing in diabetes and oncology are blockbuster in size, and the therapies are still in the early stages of development,” the analysts wrote.
Shares of Genprex are currently trading around US$1.56 on the NASDAQ.
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