On Monday, H.C. Wainwright adjusted its price target for CalciMedica (NASDAQ:CALC), a biopharmaceutical company, reducing it to $16.00 from the previous $20.00, while maintaining a Buy rating on the stock.
The revision follows the release of late-breaking data from the Phase 2b CARPO trial of Auxora for the treatment of acute pancreatitis with systemic inflammatory response syndrome (SIRS), which was presented at the American College of Gastroenterology 2024 Annual Scientific Meeting.
CalciMedica had previously disclosed that the CARPO trial met its primary endpoint, with Auxora treatment resulting in a statistically significant dose-response and up to 43.6% relative reduction in median time to solid food tolerance compared to placebo in patients with severe inflammation.
The company indicated that a detailed analysis of these outcomes was included in a prior note, emphasizing the positive results and setting the stage for pivotal studies in acute pancreatitis, with final data expected in the second half of 2024.
The new data presented showed that Auxora also achieved clinical benefits across multiple secondary endpoints in the Phase 2b trial. The findings include a win ratio analysis that integrates key trial endpoints, offering a comprehensive evaluation of Auxora's effectiveness in treating acute pancreatitis with SIRS.
H.C. Wainwright's note to investors highlighted key takeaways from the presentation, reiterating the Buy rating but reducing the price target.
The lowered target is attributed to several factors: dilution following an equity raise in October 2024, adjustments to the fully diluted share count and base year, and an increase in the predicted chance of success for Auxora in acute pancreatitis treatment to 25% from the previously estimated 15%.
In other recent news, CalciMedica, a biopharmaceutical company, has made several significant announcements. The company has initiated a public stock offering, with JonesTrading Institutional Services LLC as the sole book-running manager. The offering will be conducted based on a shelf registration statement filed with the Securities and Exchange Commission.
In terms of corporate governance, CalciMedica has expanded its 2023 Equity Incentive Plan by 1.5 million shares, following stockholder approval. The Annual Meeting resulted in the election of two Class I directors and the ratification of Moss Adams LLP as the principal independent registered public accounting firm for the fiscal year ending December 31, 2024.
Analyst firms, including Oppenheimer and Singular Research, have maintained positive ratings for CalciMedica, citing the company's recent clinical advancements and the market potential of its treatments. These are the recent developments in the company's operations.
InvestingPro Insights
Recent InvestingPro data provides additional context to CalciMedica's financial situation and market performance. The company's market capitalization stands at $37.73 million, reflecting its current valuation in the biotech sector. CalciMedica's stock has experienced significant volatility, with a 10.91% decline in the past week and a 19.47% drop over the last month, aligning with the H.C. Wainwright's price target reduction.
InvestingPro Tips highlight that CalciMedica holds more cash than debt on its balance sheet, which could be crucial for funding ongoing clinical trials and research. However, the company is not profitable over the last twelve months and is quickly burning through cash, factors that investors should consider alongside the promising clinical data discussed in the article.
For a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide valuable insights into CalciMedica's financial health and market position. These tips could be particularly useful for investors evaluating the company's potential in light of the recent clinical trial results and analyst adjustments.
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