REDWOOD CITY, Calif. - Adverum Biotechnologies, Inc. (NASDAQ:ADVM) announced it will host a webcast on Monday to discuss long-term clinical data for its gene therapy product aimed at treating a form of age-related macular degeneration (AMD (NASDAQ:AMD)). The clinical-stage biotech company will report 52-week results from its LUNA phase 2 study and 4-year data from the OPTIC trial, alongside pivotal program design elements for its leading candidate, ixoberogene soroparvovec (Ixo-vec).
Ixo-vec is being developed as a one-time intravitreal (IVT) injection for wet AMD, a severe eye condition that leads to blindness in older adults. This gene therapy uses a proprietary vector capsid, AAV.7m8, to deliver a gene coding for a protein that inhibits vascular endothelial growth factor (VEGF), which is associated with fluid accumulation in the macula. The current standard of care for wet AMD involves frequent and lifelong eye injections, which Ixo-vec aims to reduce or eliminate.
Wet AMD accounts for about 10% of AMD cases and is expected to affect 20 million people worldwide, with the number of cases projected to rise as populations age. The disease often affects both eyes, with up to 42% of patients developing it in the second eye within two to three years.
The U.S. Food and Drug Administration (FDA) has granted Fast Track designation to Ixo-vec for wet AMD treatment, recognizing the need for new therapeutic options. The European Medicines Agency (EMA) has given it PRIME designation, and the UK's Medicines and Healthcare Products Regulatory Agency has awarded it the Innovation Passport.
The upcoming webcast will be accessible via the Investors section of Adverum's website, with a replay available shortly after its conclusion. This event is based on a press release statement and will provide investors and analysts with key information regarding the potential of Ixo-vec as a transformative treatment for wet AMD.
In other recent news, Adverum Biotechnologies has seen some significant developments. H.C. Wainwright maintained its Buy rating on Adverum, emphasizing the potential of the company's gene therapy candidate, Ixo-vec, for the treatment of wet age-related macular degeneration (AMD). This comes alongside RBC Capital Markets adjusting its outlook on Adverum, decreasing the price target to $10.00 from the previous $12.00.
Adverum reported strong second-quarter financial results for 2024, with earnings per share of ($0.89) surpassing both firm and consensus estimates. Additionally, the company appointed Jason L. Mitchell as its new Chief Commercial Officer, expected to enhance the launch and commercialization of Ixo-vec.
Analysts from Oppenheimer, Mizuho (NYSE:MFG) Securities, and Truist Securities have maintained positive ratings on Adverum, with some adjustments to their price targets. Oppenheimer sustained its Outperform rating with a $28.00 price target, while Mizuho Securities reduced its target to $20.00, and Truist Securities revised its target from $60.00 to $40.00. These are among the recent developments for Adverum Biotechnologies.
InvestingPro Insights
As Adverum Biotechnologies prepares to unveil long-term clinical data for its gene therapy product, investors should consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Adverum's market capitalization stands at $142.7 million, reflecting the market's current valuation of the company's potential. This relatively modest market cap underscores the importance of the upcoming clinical data presentation, which could significantly impact the company's valuation.
An InvestingPro Tip indicates that Adverum holds more cash than debt on its balance sheet. This financial position could be crucial for supporting the company's ongoing research and development efforts, particularly as it advances Ixo-vec through clinical trials and potentially towards commercialization.
However, another InvestingPro Tip warns that the company is quickly burning through cash. This is not uncommon for clinical-stage biotech companies, but it emphasizes the importance of successful clinical outcomes and potential partnerships or funding opportunities to sustain operations.
The company's revenue for the last twelve months as of Q3 2023 was $1 million, with a significant revenue decline of 72.22% over the same period. This decline, coupled with the InvestingPro Tip that analysts anticipate a sales decline in the current year, highlights the critical nature of Adverum's gene therapy pipeline for its future financial performance.
It's worth noting that InvestingPro offers 11 additional tips for Adverum Biotechnologies, providing a more comprehensive analysis for investors interested in delving deeper into the company's financial health and market position.
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