On Friday, H.C. Wainwright maintained a positive stance on shares of TransCode Therapeutics Inc (NASDAQ: RNAZ), reaffirming a Buy rating and a price target of $3.00. The firm's endorsement follows TransCode's recent announcement that it has received a $2 million grant from the National Institutes of Health (NIH). The grant, awarded on September 5, is intended to support the progression of TTX-MC138 in a Phase 1/2 study.
The NIH grant comes through its Direct to Phase II Small Business Innovation Research (SBIR) program, which allocates funds to companies that have not utilized grants for preliminary feasibility studies. TransCode's completion of a Phase 0 study meets the criteria for the SBIR program.
The rigorous NIH grant process includes a comprehensive review of a company's business plan, scientific milestones, research plans, biosketches, and budget. The selection for such funding is highly competitive, with success rates often below 10%, indicating the NIH's recognition of TransCode's RNA technology as a promising approach in treating metastatic cancer.
The grant is set to be distributed over a two-year span, which H.C. Wainwright believes will be ample time to complete the Phase 1/2 study. TransCode's drug candidate, TTX-MC138, has shown promise in preclinical trials, demonstrating effectiveness against various tumor types, including breast, pancreatic, ovarian cancer, and glioblastomas. It has also shown the ability to target cancer that has spread to distant organs and to localize to metastatic lesions without affecting normal tissue.
TTX-MC138 has potential for use in combination therapies, working alongside drugs such as doxorubicin and temozolomide, and possibly with checkpoint inhibitors. With the Phase 1/2 study recently initiated, three clinical trial sites are now active, and patient screening and enrollment are underway. H.C. Wainwright's reiterated Buy rating and price target reflect confidence in the ongoing development and future prospects of TTX-MC138.
In other recent news, TransCode Therapeutics, a biopharmaceutical company, has been navigating potential delisting from Nasdaq due to non-compliance with the minimum bid price and equity requirements. The company has appealed this decision and the process is currently under review by the Nasdaq Hearings Panel.
Concurrently, TransCode announced plans for a public stock offering, with ThinkEquity acting as the sole placement agent, to further its product development, particularly its lead therapeutic candidate, TTX-MC138.
The company has reported encouraging results from its Phase 0 trial of TTX-MC138, an RNA-based cancer drug, demonstrating potential anti-tumor activity and a significant reduction in the molecular target miRNA-10b. Following these results, the FDA has authorized TransCode to commence a Phase 1/2 clinical trial for TTX-MC138.
In its recent Annual Meeting of Stockholders, four directors were elected and an amendment to increase shares for issuance under the company's 2021 Stock Option and Incentive Plan was approved. However, a proposal for a reverse stock split was rejected by stockholders. These are some of the recent developments at TransCode Therapeutics.
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