On Thursday, Piper Sandler reiterated its Overweight rating on Aligos Therapeutics Inc. (NASDAQ:ALGS) with a price target of $7.00. Aligos Therapeutics, a biopharmaceutical company, was recognized for its significant presence at the European Association for the Study of the Liver (EASL) conference. During the event, the company presented clinical data from three posters, which included promising results for Hepatitis B patients, particularly those with HBeAg Negative Chronic Hepatitis B (CHB).
The data showcased at EASL highlighted Aligos Therapeutics' advancements, with reported rapid and profound reductions in HBV DNA and RNA levels in patients. These results were noted to be best in class, showing superior efficacy compared to current nucleos(t)ide analogues (Nucs), which are standard treatments for Hepatitis B. Furthermore, the data indicated robust declines in antiviral activity across HBsAg and HBcrAg levels, supporting the second mechanism of action proposed by the company.
The positive findings are expected to facilitate Aligos Therapeutics' discussions with the U.S. Food and Drug Administration (FDA) regarding a regulatory pathway for chronic suppression of the virus. The company aims to demonstrate non-inferiority or superiority to current treatments in order to de-risk the regulatory process. With the latest clinical data in hand for both HBeAg positive and negative subjects, Aligos Therapeutics is positioned to proceed with its regulatory plans.
Piper Sandler's endorsement reflects the optimism surrounding Aligos Therapeutics' prospects following the presentation of the new data. The firm suggests that the recent developments are a clear signal for investors, indicating an opportune moment to invest in Aligos Therapeutics ahead of the company's upcoming Phase 2 trials.
In other recent news, Aligos Therapeutics has been making significant strides in its various programs. The company reported encouraging Phase 1 results for its pan-coronavirus protease inhibitor, ALG-097558, which was well-received by healthy volunteers, suggesting potential for twice-daily dosing without the need for ritonavir boosting or food intake considerations.
Additionally, Aligos presented new data at the 33rd Annual Meeting of the Asian Pacific Association for the Study of the Liver, revealing promising findings from Phase 1 studies of two investigational drugs, ALG-055009 and ALG-000184, being developed for metabolic dysfunction-associated steatohepatitis and chronic hepatitis B respectively.
Investment firm Piper Sandler reaffirmed its Overweight rating on Aligos, maintaining a steady price target of $7.00 on the shares. The firm views Aligos as an undervalued stock, highlighting the potential of its Chronic Hepatitis B program and the promising candidate for Non-Alcoholic Steatohepatitis, ALG-055009. Piper Sandler anticipates significant event for Aligos with the expected Phase 2 HERALD trial results in the fourth quarter of 2024.
InvestingPro Insights
Complementing Piper Sandler's optimistic outlook on Aligos Therapeutics Inc. (NASDAQ:ALGS), InvestingPro data provides a glimpse into the company's financial health and market performance. With a Market Cap of approximately $46.83 million and a Price / Book ratio over the last twelve months as of Q1 2024 at 0.78, investors may find the company's valuation metrics intriguing. The company's cash position is a notable strength, as it holds more cash than debt on its balance sheet, providing financial flexibility.
However, challenges are evident with Aligos Therapeutics rapidly burning through cash and analysts anticipating a sales decline in the current year. The InvestingPro Tips highlight that the stock has experienced significant volatility and price declines over the last few months, with a 1 Month Price Total Return as of the 158th day of 2024 at -25.99%, and a 3 Month Price Total Return at -38.83%. These metrics could signal caution for investors considering the stock's recent performance.
For those looking to delve deeper into Aligos Therapeutics' investment potential, additional analysis is available. There are 12 more InvestingPro Tips listed on InvestingPro, which provide a comprehensive understanding of the company's financial and market status. Investors can explore these tips by visiting https://www.investing.com/pro/ALGS and can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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