On Friday, H.C. Wainwright, a well-known investment firm, raised the price target for shares of Aura Biosciences (NASDAQ:AURA) to $22.00, up from the previous $21.00, while maintaining a Buy rating on the stock. The adjustment follows a recent investor event where Aura Biosciences presented encouraging early Phase 1 data for their drug candidate, bel-sar, aimed at treating non-muscle invasive bladder cancer (NMIBC).
The virtual urologic oncology investor event, which took place on Thursday, featured key opinion leaders (KOLs) and highlighted bel-sar, a novel virus-like drug conjugate. Bel-sar is designed as a potential vision- and organ-sparing treatment and is being tested in various solid tumor indications. The drug is composed of a human papillomavirus-derived virus-like particle conjugated to approximately 200 molecules of a light-activatable drug.
During the event, Aura shared that in the early Phase 1 trial, bel-sar had shown promising results. Four out of five patients with low-grade NMIBC achieved complete clinical responses following light activation of bel-sar. Additionally, all three patients with high-grade NMIBC exhibited immune responses to the treatment post light activation.
The safety profile of bel-sar was also a point of discussion, with the company reporting that the drug was well tolerated. There were less than 10% of patients experiencing Grade 1 drug-related adverse events, indicating a favorable safety profile for the drug candidate.
The positive clinical outcomes and the drug's safety have led H.C. Wainwright to reiterate their Buy rating for Aura Biosciences and to increase the price target for the company's stock. The firm's outlook reflects optimism in the potential of bel-sar as a treatment for NMIBC, based on the preliminary data presented.
In other recent news, Aura Biosciences has been making significant strides in its clinical trials. The company has reported promising results from its Phase 1 and Phase 2 trials for its drug candidate, bel-sar, in treating non-muscle invasive bladder cancer (NMIBC) and early-stage choroidal melanoma respectively.
Analyst firms BTIG, H.C. Wainwright, and TD Cowen have responded positively to these developments, with BTIG raising its stock target for Aura Biosciences and H.C. Wainwright and TD Cowen reiterating their Buy ratings.
The company's Phase 1 trial data showed promising signs of immune response to bel-sar, and the Phase 2 study demonstrated an 80% tumor control rate and a 90% rate of visual acuity preservation. Furthermore, Aura Biosciences is preparing for a Phase 2 trial to further evaluate bel-sar and is currently conducting a pivotal Phase 3 trial, with data expected in 2026.
Aura Biosciences has also seen changes in its financial leadership, with the departure of CFO Julie Feder and the appointment of Amy Elazzouzi as interim CFO.
InvestingPro Insights
Aura Biosciences' recent positive clinical data and the subsequent price target increase by H.C. Wainwright are reflected in the company's recent stock performance. According to InvestingPro data, AURA has shown a significant 45.75% price total return over the past six months, indicating growing investor confidence in the company's potential.
Despite the promising clinical results, it's important to note that AURA is not currently profitable, as highlighted by one of the InvestingPro Tips. This is further supported by the negative EBITDA of -$89.06 million for the last twelve months as of Q2 2024. However, the company's financial position appears stable, with another InvestingPro Tip revealing that AURA holds more cash than debt on its balance sheet, potentially providing runway for further clinical development.
The current market cap of $510.45 million suggests that investors are pricing in future potential rather than current profitability. With H.C. Wainwright's new price target of $22, it's worth noting that InvestingPro's Fair Value estimate stands at $7.26, while the Fair Value based on analyst targets is $21, closely aligning with H.C. Wainwright's view.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for AURA, providing deeper insights into the company's financial health and market position.
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