Analysts at Maxim Group reiterated their 'Buy' rating on Atossa Therapeutics Inc (NASDAQ:ATOS) after the biopharmaceutical company reported its second quarter 2023 financial results on August 14.
They also maintained their price target of US$4 on the company, which is developing medicines in areas of significant unmet medical need in oncology with a current focus on breast cancer and lung injury caused by cancer treatments.
This price target represents a 300% upside from Atossa’s current share price of US$1.
The UBS analysts highlighted that during 2Q Atossa continued to progress its three ongoing Phase 2 research programs involving oral (Z)-endoxifen for various breast cancer-related indications.
They wrote that oral endoxifen may yield therapeutic value more rapidly than tamoxifen, the current stand of care for both early and advanced estrogen-receptor-positive breast cancer.
“A key differentiating factor between oral endoxifen and tamoxifen is the time it takes to build up therapeutic levels of the compound sufficient to impact disease,” they wrote.
“Therapeutically viable concentrations of tamoxifen take 50 to 200 days to be reached. Endoxifen, on the other hand, reaches therapeutically viable drug concentrations within seven days; this was shown in a prior Phase 1 pharmacokinetic/pharmacodynamic trial.”
On their price target, the analysts explained that they modelled the commercial launch of oral endoxifen in breast cancer and mammographic breast density in 2026.
“A revenue risk adjustment of 70% is factored in based on clinical trial risk and stage of development,” they wrote.
“A 25% discount rate is then applied to the free cash flow, discounted earnings per share (EPS), and sum-of-the-parts models, which are equally weighted to derive a $4 price target.”
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