On Friday, H.C. Wainwright adjusted its price target for Kronos Bio Inc. (NASDAQ:KRON), a biopharmaceutical company, to $2.25 from the previous $2.50. The firm maintained a Buy rating on the stock. This revision follows the presentation of interim Phase 1 clinical data at the 2023 AACR-NCI-EORTC meeting, where Kronos Bio showcased results from its study involving the company's selective oral CDK9 inhibitor, KB-0742.
The clinical data included findings from 28 patients who had a median of 3.5 prior therapies. The study focused on the efficacy of the 60mg dose level of KB-0742, which was previously selected as the recommended Phase 2 dose (RP2D). The interim analysis indicated that the 60mg dose led to a targeted reduction of approximately 50% in levels of phosphorylated Ser2 on RNA polymerase II (pSer2), a direct substrate target of CDK9, in peripheral blood monocytes (PBMCs). This level of target engagement aligns with the anti-tumor activity observed in preclinical models.
The decision to lower the price target was influenced by an increase in the company's share count and a moderately lower cash position. Despite the reduced price target, H.C. Wainwright reaffirmed its positive outlook on the company's stock, reiterating the Buy rating.
Kronos Bio's ongoing research into KB-0742 and its potential effects on tumor activity is a significant part of the company's portfolio. The updated price target reflects the firm's analysis of the company's financials and the clinical data outcomes.
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