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Brookline Capital sets $9 target on OS Therapies, bullish on cancer tech

Published 22/08/2024, 18:30
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On Thursday, Brookline Capital Markets initiated coverage of OS Therapies, Inc (NYSE:OSTX), assigning a Buy rating to the company's stock with a price target of $9.00. OS Therapies is currently focused on the development of two platform technologies, OST-HER2 and OST-tADC, both aimed at treating osteosarcoma and other solid cancers.

OST-HER2 is described as a biologic Listeria monocytogenes vector-based immunotherapeutic vaccine. This treatment is in a Phase 2b trial, which is potentially pivotal for osteosarcoma patients.

The trial aims to prevent metastasis, delay recurrence, and improve overall survival rates. Brookline Capital Markets anticipates that a Biologics License Application (BLA) for OST-HER2 could be filed by mid-2025, with the potential for approval by late 2026.

The second technology, OST-tADC, represents a next-generation Antibody Drug Conjugate (ADC) platform. It features tailored antibody-linker-payload candidates, which are built using a unique silicone linker technology. This technology allows for the delivery of multiple payloads per linker.

The firm suggests that as OST-HER2 progresses through clinical trials, there is a favorable risk-reward scenario, especially considering the significant unmet need for safe and effective treatments for osteosarcoma.

The analyst from Brookline Capital Markets has not only highlighted the potential of OS Therapies' technologies but also underscored the importance of addressing the unmet medical needs in the treatment of osteosarcoma. The company's advancements in immunotherapeutic vaccines and ADC platforms could offer new avenues for patients dealing with this type of cancer.

In other recent news, OS Therapies Incorporated has made significant strides in the development of its cancer immunotherapy drug, OST-HER2. The company has announced the formation of a Patient Advocacy Advisory Board for its osteosarcoma program, which aims to provide insights from the osteosarcoma community to inform discussions with the FDA.

InvestingPro Insights

As OS Therapies, Inc (NYSE:OSTX) garners a positive outlook from Brookline Capital Markets, real-time data from InvestingPro underscores a mixed financial landscape. The company boasts a market capitalization of $84.37 million, which reflects its position in the biotechnology market. However, the financial metrics reveal some challenges, with a negative P/E ratio of -6.74 and adjusted P/E ratio for the last twelve months as of Q2 2024 at -12.82, indicating that the company is not currently profitable. Additionally, the gross profit for the same period stands at a marginal -$0.01 million.

InvestingPro Tips suggest that OSTX has experienced a significant return over the last week and strong returns over the past month, three months, and six months, with the price total return reaching 60.96% year-to-date. These metrics are particularly relevant for investors who may be weighing the company's recent performance against its long-term potential. Notably, the stock is known to trade with high price volatility, which could be a critical factor for risk-averse investors. Moreover, the company does not pay dividends, which may influence the investment decisions of those seeking regular income streams.

For those considering an investment in OS Therapies, it is worth noting that there are additional InvestingPro Tips available that can provide deeper insights into the company's financial health and market position. A thorough review of these tips could be beneficial in making informed investment decisions.

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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