On Tuesday, EF Hutton initiated coverage on shares of Clene Inc. (NASDAQ:CLNN), a biopharmaceutical company focused on developing therapies for neurodegenerative diseases. The firm has given the stock a Buy rating with a price target of $23.00.
Clene's leading drug candidate, CNM-Au8, is a solution of gold nanocrystals aimed at improving cellular energy production and neuronal function. This therapeutic is currently in the clinical stage and is being tested for the treatment of diseases like amyotrophic lateral sclerosis (ALS) and multiple sclerosis (MS).
The analyst at EF Hutton highlighted the company's innovative approach to treating neurodegenerative conditions, noting that CNM-Au8 works on a cellular level to enhance energy production in the central nervous system (CNS). However, they pointed out that it could take up to 12 months to see the results of the treatment. The coverage includes projections for multiple indications of the drug.
In their financial model, EF Hutton applied a 50% probability of success for CNM-Au8 in treating ALS and a 10% probability for treating MS. They also used a 30% discount rate in their calculations. The firm anticipates that Clene will need to raise additional capital, which has been factored into the final share count in their analysis.
EF Hutton's price target is based on a combination of Free Cash Flow to the firm (FCFF), discounted EPS (dEPS), and sum-of-the-parts (SOP) models. These models are weighted equally and averaged, with the final number rounded to the nearest whole number to arrive at the 12-month price target for Clene Inc. The analyst's optimistic outlook reflects the potential market impact of Clene's therapeutic developments in the field of neurodegenerative disease treatment.
In other recent news, Clene Inc. has been the focus of promising developments in the pharmaceutical industry. The company has released promising new biomarker data indicating the clinical efficacy of their drug CNM-Au8 in treating patients with Amyotrophic Lateral Sclerosis (ALS). This data has led H.C. Wainwright to maintain a Buy rating on Clene and significantly raise the shares target to $31.00 from the previous $7.00.
Clene Inc. also announced a 1-for-20 reverse stock split, a strategic move aimed at maintaining compliance with Nasdaq's minimum bid price requirement for continued listing. This decision will reduce the outstanding common stock from approximately 128.7 million shares to about 6.4 million shares.
Moreover, Clene Inc. has disclosed promising preclinical data for its product, CNM-Au8, a potential treatment for Rett Syndrome. The findings suggest that CNM-Au8 could improve mitochondrial respiration and support neuroprotection in vitro.
The preclinical stages showed significant improvements in neuron health, neuron survival, and neurite lengths. H.C. Wainwright has reiterated a Buy rating for Clene Inc., reflecting the firm's confidence in the potential of CNM-Au8 to become a significant treatment option for Rett Syndrome.
These recent developments highlight Clene Inc.'s ongoing efforts to explore new indications for CNM-Au8 and its commitment to addressing unmet medical needs in neurodegenerative diseases.
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