BTIG has raised the price target for shares of Aura Biosciences (NASDAQ: AURA) to $24.00, up from the previous $21.00, while reiterating a Buy rating on the stock.
The adjustment follows the release of early data from the ongoing Phase 1 trial for non-muscle invasive bladder cancer (NMIBC) treatment, which exhibited promising results.
The trial data showed that the company's drug, belsar, has a consistent abscopal effect with broad immune infiltrate. This effect is significant as 70% to 80% of NMIBC patients currently experience recurrence with the standard of care (SoC).
The early immune response to belsar was observed as soon as seven days after laser activation, which is considerably faster than the typical 3 to 6 weeks with checkpoint inhibitors (CPIs).
The efficacy data highlighted today involved doses of belsar that are used in ocular indications, ranging from 100µg to 200µg. Since NMIBC involves lesion sizes more than 20 times larger, there is an optimistic view that larger lesions could see even greater benefits from belsar's therapeutic effects at higher doses.
Physicians involved in the data call noted the limitations of transurethral resection of bladder tumor (TURBT), the current procedure used to remove tumors, which sometimes fails to eliminate all cancerous tissue. They expressed interest in an alternative treatment like belsar that can deliver a field effect without the cystitis often associated with intravesical treatments such as Bacillus Calmette-Guerin (BCG).
The next phase of the trial will expand to study higher doses of belsar and explore varying times between dosing and light activation. With NMIBC lacking a function-sparing treatment option that also has a potent abscopal effect, belsar is positioned to potentially meet this unmet need.
In other recent news, Aura Biosciences announced promising preliminary results from a Phase 1 trial of its drug candidate bel-sar for the treatment of non-muscle invasive bladder cancer. The company also reported favorable results from a Phase 2 study of bel-sar for early-stage choroidal melanoma. Additionally, 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.
In terms of leadership changes, Aura Biosciences announced the departure of CFO Julie Feder, with Amy Elazzouzi stepping in as interim CFO. These are recent developments for Aura Biosciences, which continues its mission to develop precision therapies for solid tumors.
In the realm of analyst opinions, H.C. Wainwright and TD Cowen have reiterated their Buy ratings on Aura Biosciences following the promising outcomes from the bel-sar trials. These ratings indicate confidence in the ongoing development of Aura Biosciences' therapies and their future prospects in the market.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Aura Biosciences' financial position and market performance, providing context to the positive clinical trial results and analyst upgrade. The company's market capitalization stands at $510.45 million, reflecting investor interest in its potential breakthrough treatments.
InvestingPro Tips highlight that Aura Biosciences holds more cash than debt on its balance sheet, which could be crucial for funding ongoing clinical trials and potential commercialization efforts for belsar. Additionally, the company has seen a significant return over the last week, with a 13.33% price increase, possibly reflecting market enthusiasm for the recent NMIBC trial data.
However, it's important to note that Aura is not currently profitable, with a negative P/E ratio of -6.31 over the last twelve months as of Q2 2024. This is not uncommon for biotech companies in the development stage, but it underscores the importance of successful clinical outcomes for future financial performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips for Aura Biosciences, providing a deeper understanding of the company's financial health and market position.
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