On Thursday, H.C. Wainwright adjusted its stock price target for Bergenbio ASA (BGBIO:NO), a Norwegian biopharmaceutical company, raising it significantly to NOK70.00 from NOK2.00. The firm has maintained a Buy rating on the stock. The upgrade follows BerGenBio's announcement of its first-quarter 2024 financial results on May 29, which included a reverse-split-adjusted earnings per share (EPS) of (NOK1.34).
The company has recently executed a 1-for-100 reverse share split, effective May 30, which has been incorporated into H.C. Wainwright's financial model. BerGenBio concluded the quarter with NOK117.3 million in cash reserves. Management has indicated this should suffice to support the company's operations into the second half of 2025.
BerGenBio's primary focus remains on the development of bemcentinib, its leading drug candidate, for first-line treatment of non-small cell lung cancer (NSCLC) with STK11 mutations and no actionable mutations. Over the past quarter, the company has made notable strides in advancing clinical trials targeting the STK11 mutation.
Moreover, BerGenBio has entered into a clinical collaboration with UT Health San Antonio to investigate bemcentinib in combination with Sobi's pacritinib, a JAK2 inhibitor, for advanced NSCLC patients. This Phase 1b/2 investigator-sponsored trial (IST) will be conducted at UT Health San Antonio, with funding from a 5-year, $1.5 million grant from the National Cancer Institute (NCI) and the National Institutes of Health (NIH).
Additional updates from BerGenBio's bemcentinib program include the commencement of a global Phase 2a study focusing on STK11 mutated-NSCLC. Interim results from a limited patient group in the Phase 2a study are anticipated in the second half of 2024, with a broader interim analysis expected in 2025.
A safety assessment from the Phase 1b segment, spanning three cohorts, is also projected for the second half of 2024. With these developments in mind, H.C. Wainwright reiterated its Buy rating and adjusted the price target to reflect the post-reverse-split valuation.
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