Analysts at Maxim Group have reiterated a 'buy' rating on Atossa Therapeutics Inc (NASDAQ:ATOS) shares after the biotech recently announced an enrollment update for its ongoing P2 KarismaEndoxifen study, and also revealed a change of CFO.
The P2 trial, which is evaluating daily doses of endoxifen in premenopausal women with measurable breast density for six months, has 170 patients enrolled so far. Enrollment is expected to complete in 4Q 2023, with data to follow in 2024.
The Maxim analysts also noted that on June 1, the company announced the appointment of Greg Weaver as CFO, taking over from former CFO Kyle Guse. Weaver has more than 30 years of life sciences, financial, and operations experience, most recently serving as CFO of privately held BioIntelliSense, a commercial-stage med-tech company focused on remote patient monitoring.
The analysts pointed out that Atossa remains well capitalized with $103.9 million in cash as of end-1Q 2023, which should provide a runway into 2025.
Looking at the stock's valuation, they said: "We model the commercial launch of oral endoxifen in breast cancer (BC) and mammographic breast density (MBD) in 2026. A revenue risk adjustment of 70% is factored in based on clinical trial risk and stage of development. A 25% discount rate is then applied to the free cash flow, discounted EPS, and sum-of-the-parts models, which are equally weighted to derive a $4 price target."
Atossa shares closed trade on Monday at $1.20.