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Precision BioSciences keeps $34 target, Market Perform rating

Published 04/11/2024, 19:50
DTIL
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On Monday, BMO Capital maintained its Market Perform rating and $34.00 price target for Precision BioSciences Inc . (NASDAQ:DTIL). The focus of the company's third-quarter 2024 earnings report is on the clinical development of PBGENE-HBV, which received Clinical Trial Application (CTA) approval in October 2024. Precision BioSciences is expected to deliver clinical data for this program in 2025.

The firm highlighted the significance of upcoming clinical data from iECURE for Ornithine Transcarbamylase (OTC) deficiency, anticipated in the first half of 2025, which could serve as the first clinical validation of Precision BioSciences' gene-editing platform, ARCUS. The analyst pointed out that the company's financial position, with a cash runway extending into the second half of 2026, provides an opportunity for multiple clinical de-risking events throughout 2025. These events have the potential to positively shift investor sentiment and contribute to upside in the company's stock value.

Precision BioSciences is preparing to reveal preclinical data and the trial design for its Hepatitis B Virus (HBV) program at the upcoming American Association for the Study of Liver Diseases (AASLD) meeting on November 15, 2024. This announcement is considered the next key catalyst for the company.

The company's strategic focus and upcoming milestones are closely watched by investors, as they could influence the stock's performance in the near future. Precision BioSciences aims to advance its pipeline and validate its ARCUS platform, with the goal of achieving clinical success and enhancing shareholder value.

In other recent news, Precision BioSciences has been making significant strides in gene editing technology. The company has presented preclinical data showcasing the high-efficiency gene editing capabilities of its ARCUS platform, with over 85% efficiency in T cells and 39% in primary human hepatocytes. Precision BioSciences has initiated a Phase 1 clinical trial for PBGENE-HBV, a potential cure for chronic hepatitis B, with approval in Moldova and applications pending in other regions. The company has also reshuffled its clinical leadership team, appointing Dr. Murray Abramson as Senior Vice President, Head of Clinical Development, and John Fry as Strategic Clinical Advisor.

Further, Precision BioSciences has received a $13 million convertible note payment from Imugene Limited, strengthening its financial resources. In partnership news, the company's collaborator, iECURE, received FDA Fast Track designation for its gene therapy candidate ECUR-506. Precision BioSciences has also submitted additional Clinical Trial Applications as part of its global strategy for PBGENE-HBV and plans to share safety data and Phase 1 trial details in November. These recent developments are part of the company's ongoing efforts to advance gene editing therapies.

InvestingPro Insights

Precision BioSciences Inc. (NASDAQ:DTIL) presents an intriguing financial picture that complements the clinical developments highlighted in the article. According to InvestingPro data, the company's revenue growth has been impressive, with a 152.15% increase in quarterly revenue as of Q2 2024. This substantial growth aligns with the company's advancing clinical pipeline, particularly the PBGENE-HBV program mentioned in the article.

InvestingPro Tips reveal that Precision BioSciences holds more cash than debt on its balance sheet, which supports the analyst's observation about the company's cash runway extending into the second half of 2026. This financial stability is crucial for funding ongoing clinical trials and potential de-risking events throughout 2025.

However, investors should note that the stock is trading near its 52-week low, with a market cap of $58.27 million. This could present an opportunity for investors who believe in the company's potential, especially considering the upcoming clinical data and the AASLD meeting catalyst mentioned in the article.

For those interested in a deeper analysis, InvestingPro offers 10 additional tips for DTIL, providing a more comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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