On Friday, H.C. Wainwright maintained a Buy rating on shares of Aura Biosciences (NASDAQ:AURA), with a $21.00 price target. The firm's endorsement follows Aura's recent Virtual Ocular Oncology Investor Event, where the company presented favorable Phase 2 study outcomes for its treatment candidate, bel-sar (AU-011), in early-stage choroidal melanoma.
Aura Biosciences aims to offer an alternative to the current standard radiotherapy for choroidal melanoma, which often leads to legal blindness for most patients. The company's investigational drug, bel-sar, is a virus-like drug conjugate designed to preserve vision and potentially spare the organ from the invasive effects of existing treatments. The product has already received Orphan Drug Designation from the FDA and EMA, as well as Fast Track Designation from the FDA for this indication.
The Phase 2 dose-escalation study, which included 22 participants, was aimed at identifying the safe dosage and optimal therapeutic regimen for bel-sar when administered suprachoroidally. After a 12-month follow-up period, results showed an 80% tumor control rate among patients eligible for Phase 3 trials who received the therapeutic regimen. Notably, these patients also exhibited a significant halt in tumor growth after treatment.
Furthermore, the study reported a high rate of visual acuity preservation, with 90% of the participants maintaining their sight. This finding is particularly significant considering that 80% of the tumors treated were at a high risk for causing vision loss. The positive results from the Phase 2 study could position bel-sar as a less invasive and more vision-friendly option for patients with early-stage choroidal melanoma.
InvestingPro Insights
Following H.C. Wainwright's endorsement of Aura Biosciences and its promising treatment candidate bel-sar, InvestingPro data and tips offer additional insights into the company's financial health and stock performance. With a market capitalization of $485.64 million and a price to book ratio of 2.54 as of Q2 2024, Aura Biosciences stands as a company with significant market recognition.
Despite not being profitable over the last twelve months, as evidenced by a negative P/E ratio of -6.01, the company has demonstrated strong returns over the last week, month, and three months, with figures standing at 25.84%, 20.12%, and 35.97% respectively.
InvestingPro Tips highlight that Aura Biosciences holds more cash than debt on its balance sheet, which is a positive sign of financial stability. This is complemented by the fact that the company's liquid assets exceed its short-term obligations, suggesting a robust liquidity position.
On the other hand, the company is quickly burning through cash, and it suffers from weak gross profit margins, which could be areas of concern for potential investors. Notably, Aura does not pay a dividend, which may influence investment decisions for those seeking regular income. Investors can find a total of 9 InvestingPro Tips for Aura Biosciences, offering a deeper dive into the company's financial nuances and stock potential.
These InvestingPro insights can help investors weigh the recent clinical success against the company's financial metrics, providing a more comprehensive view of Aura Biosciences' investment profile.
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