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Rallybio reiterated at Buy at H.C. Wainwright on FNAIT drug data

EditorRachael Rajan
Published 03/09/2024, 13:42
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On Tuesday, H.C. Wainwright reaffirmed a Buy rating and a $6.00 price target for NASDAQ:RLYB, following recent developments in Rallybio Corp's drug studies.

The biopharmaceutical company's shares are being watched after it published data on RLYB212, a drug candidate aimed at preventing fetal and neonatal alloimmune thrombocytopenia (FNAIT).

On August 29, Rallybio announced the publication of Phase 1 single-ascending dose (SAD) proof-of-concept data for RLYB212 in the journal Thrombosis and Haemostasis. The study demonstrated that two doses of the drug, 0.09mg and 0.29mg, achieved a pre-specified goal of at least a 90% reduction in mean platelet elimination half-life compared to a placebo. Notably, the results indicated that RLYB212 cleared transfused HPA-1a+ platelets in a dose-dependent manner.

Previously, top-line data from the Phase 1b SAD study of RLYB212 was presented at the International Society on Thrombosis and Haemostasis (ISTH) conference in June 2023. The data continued to show promise for the treatment of FNAIT. Additionally, preliminary data from multiple dose studies of RLYB212 suggested the potential for monthly dosing regimens.

Rallybio is preparing to advance the clinical development of RLYB212. The company plans to begin a Phase 2 dose-confirmation trial in the fourth quarter of 2024. This study will involve pregnant women at higher risk for HPA-1a alloimmunization and FNAIT. The continued progress of RLYB212 in clinical trials supports the analyst's optimistic outlook on the potential of the drug and Rallybio's stock.

In other recent news, JPMorgan (NYSE:JPM) has downgraded Rallybio's stock from Overweight to Neutral, citing a lack of near-term catalysts.

In other executive changes, Dr. Martin Mackay will step down from his Executive Chairman role at Rallybio by the end of 2024, transitioning to the role of Chairman of the Board and a consultant for the company. Lastly, Rallybio has secured a strategic equity investment from Johnson & Johnson, which will support Rallybio's Phase 3 trial of nipocalimab for FNAIT treatment.

InvestingPro Insights

In light of the recent developments at Rallybio Corp, and the reaffirmed Buy rating from H.C. Wainwright, let's consider some real-time data and InvestingPro Tips that may provide a clearer financial picture of the company. As of the latest metrics, Rallybio holds a market capitalization of approximately $47.71 million, with a Price to Book ratio for the last twelve months as of Q2 2024 at 0.6. This suggests that the company's stock is potentially undervalued in terms of its assets.

However, it's important to note that the company's revenue over the same period stood at just $0.3 million, with an operating income margin indicating a significant loss. The Price/Earnings (P/E) Ratio, both standard and adjusted, is negative, reflecting the company's lack of profitability in recent times. These financials are consistent with one of the InvestingPro Tips which points out that analysts do not anticipate Rallybio will be profitable this year.

Additionally, despite holding more cash than debt, Rallybio is quickly burning through cash, which is a point of concern for investors. The stock price has also been moving in the opposite direction of the market and is trading near its 52-week low, indicating a bearish trend. The InvestingPro platform contains a total of 11 tips for Rallybio, providing deeper insights for those considering an investment in the company.

For those interested in the full spectrum of analysis, additional InvestingPro Tips can be accessed, which may help in making a more informed decision regarding Rallybio's financial health and stock performance.

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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