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Can-Fite shares maintain Buy rating, price target on trial news

EditorNatashya Angelica
Published 12/11/2024, 14:26
CANF
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Tuesday, H.C. Wainwright reaffirmed a Buy rating and an $18.00 price target for Can-Fite BioPharma (NYSE:CANF) shares, following the company's announcement on Monday that it had begun dosing the first patient in a Phase 2a clinical trial. This trial is evaluating namodenoson in patients with advanced pancreatic adenocarcinoma (PDAC). The firm views this development positively, as it broadens the range of indications Can-Fite is exploring with namodenoson.

Namodenoson is an orally bioavailable drug that targets the A3 adenosine receptor (A3AR) with high affinity and selectivity. A3AR is notably overexpressed in diseased cells while remaining at low levels in normal cells.

The drug has already achieved FDA Fast Track and Orphan Drug designation for use in second-line hepatocellular carcinoma (HCC). Moreover, last month, namodenoson received Orphan Drug designation from the FDA for pancreatic cancer treatment.

The ongoing Phase 2a study is a multicenter, open-label trial expected to enroll 20 patients with PDAC who have seen disease progression following at least first-line therapy with FOLFIRINOX or gemcitabine-nab-paclitaxel. The latter is recommended for patients who cannot access or tolerate FOLFIRINOX due to its associated high toxicity. Participants in the trial will receive a twice-daily oral dose of namodenoson 25mg for a 28-day cycle.

If the trial demonstrates that namodenoson is safe, tolerable, and effective, it could represent a new therapeutic option for PDAC patients, who currently have limited effective treatment choices. While namodenoson for PDAC is not yet included in the firm's models, positive results from this proof-of-concept trial could serve as a significant catalyst.

In light of these developments, H.C. Wainwright has reiterated its Buy rating and $18 price target for Can-Fite BioPharma, signaling confidence in the potential of namodenoson to address unmet medical needs in the treatment of advanced PDAC.

In other recent news, Can-Fite BioPharma has secured an Australian patent for its obesity treatment drug, Namodenoson, which is also being evaluated for various cancer treatments. The patent, set to expire in 2040, covers methods of treating obesity through oral administration of the drug.

The company's partner, Vetbiolix, has secured a $325 million licensing agreement following positive results from a clinical study on canine osteoarthritis with the drug Piclidenoson. This agreement could yield significant returns for Can-Fite over the next decade.

However, the company's revenues for the first half of 2024 decreased to $0.32 million from $0.39 million in the same period last year, while the net loss improved to $3.95 million, largely due to reduced operating expenses. EF Hutton has upgraded Can-Fite BioPharma to a Buy rating, citing the potential of its pipeline drugs, Namodenoson and Piclidenoson.

In addition, Can-Fite BioPharma received a Notice of Allowance from the European Patent Office for its erectile dysfunction treatment patent related to the CF602 drug candidate. These recent developments highlight Can-Fite's ongoing commitment to drug development and clinical trials.

InvestingPro Insights

Recent financial data from InvestingPro sheds additional light on Can-Fite BioPharma's (NYSE:CANF) current position. The company's revenue for the last twelve months as of Q2 2024 stands at $0.67 million, with a revenue growth decline of 15.89% over the same period. This aligns with one of the InvestingPro Tips, which notes that CANF is "quickly burning through cash."

Despite the challenging financial metrics, CANF's balance sheet shows some strength. An InvestingPro Tip highlights that the company "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it pursues its clinical trials. Additionally, another tip indicates that "liquid assets exceed short term obligations," potentially offering a buffer for near-term operational needs.

It's worth noting that analysts do not anticipate the company to be profitable this year, according to InvestingPro Tips. This expectation is consistent with the company's current focus on research and development, particularly with the ongoing Phase 2a clinical trial for namodenoson in pancreatic cancer patients.

For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for CANF, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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