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uniQure retains PT with Buy rating on gene therapy prospects

EditorAhmed Abdulazez Abdulkadir
Published 20/08/2024, 13:00
QURE
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On Tuesday, H.C. Wainwright reaffirmed a Buy rating with a $25.00 price target on shares of uniQure BV (NASDAQ:QURE). The firm's analyst highlighted the company's second-quarter financial results for 2024 and provided an update on its gene therapy (GT) pipeline. uniQure is preparing for a Type B meeting with the FDA in the second half of 2024 to discuss an accelerated clinical development path for AMT-130, its GT candidate for Huntington's disease, which is currently in Phase 1/2 development. The company plans to share feedback from the FDA by the end of 2024.

uniQure has continued dosing patients in a third cohort of its ongoing Phase 1/2 trial to assess the safety and tolerability of AMT-130, with the expectation to complete enrollment in this cohort in the second half of 2024. Safety data from this group is anticipated in the first half of 2025. Additionally, on August 15, 2024, uniQure initiated a Phase 1/2a open-label trial for AMT-191, a GT program targeting Fabry disease.

The company is also moving forward with its GT programs for refractory mesial temporal lobe epilepsy (rMTLE) and SOD1 amyotrophic lateral sclerosis (ALS). Screening has begun, and patient enrollment is expected to start in the Phase 1/2a trial for AMT-260 in rMTLE and the Phase 1/2 trial for AMT-162 in ALS, both slated for the third quarter of 2024.

To optimize its operations, uniQure announced a significant organizational restructuring, including a 65% reduction in its workforce and the sale of its manufacturing facility in Lexington, Massachusetts. These measures are part of the company's strategy to prioritize the development of its GT programs, particularly those targeting Huntington's disease and rMTLE.

As of the end of the second quarter of 2024, uniQure reported having approximately $524 million in cash reserves. The company estimates that these funds, along with the expected savings from its restructuring efforts, should be sufficient to support its operations through the end of 2027.

In other recent news, uniQure N.V. has reported encouraging interim data from its Phase I/II trials of AMT-130, a gene therapy candidate for Huntington's disease. The trials have shown a significant slowing in disease progression and a notable reduction in neurofilament light protein, a neurodegeneration marker. This has led to discussions with the FDA about potentially expedited clinical development.

In addition, Genezen has acquired uniQure's commercial gene therapy operations in Lexington, MA, enhancing its global gene therapy development capabilities. The Lexington site will serve as Genezen's global AAV center of excellence.

In terms of analyst ratings, both H.C. Wainwright and Stifel have maintained a Buy rating on uniQure, following positive trial updates and the FDA's granting of an RMAT designation to AMT-130.

As for governance, uniQure's shareholders have approved an expansion of the company's share incentive plan, reappointment of board members, and the adoption of the 2023 statutory annual accounts. However, Paula Soteropoulos, a non-executive director, has chosen not to stand for re-election at the next annual meeting.

InvestingPro Insights

As uniQure NV (NASDAQ:QURE) continues to navigate through its clinical trials and organizational restructuring, real-time data from InvestingPro provides a snapshot of the company's financial health and market performance. With a market capitalization of approximately $319.94 million, uniQure's current valuation reflects investor sentiment and market conditions. Despite a challenging revenue growth rate of -75.25% in the last twelve months as of Q2 2024, the company's quarterly revenue growth shows a significant spike of 359.37%, indicating potential volatility or a substantial change in the company's operations.

InvestingPro Tips suggest that analysts are optimistic about sales growth in the current year, with 6 analysts revising their earnings upwards for the upcoming period. This could be a sign of confidence in uniQure's pipeline and future prospects. However, it's noted that the company is quickly burning through cash and suffers from weak gross profit margins, which are critical factors for investors to consider. On a positive note, uniQure's liquid assets exceed short-term obligations, and the company operates with a moderate level of debt, providing some financial stability. For those interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/QURE.

While the company does not pay a dividend, reflecting a reinvestment strategy into its gene therapy programs, the stock has experienced a strong return over the last three months, up 35.46%. This could be indicative of market recognition of the company's potential or specific events that have favorably impacted investor sentiment. As uniQure continues to advance its clinical trials and streamline its operations, these financial metrics and expert insights from InvestingPro will be valuable for investors looking to keep a pulse on the company's progress and investment potential.

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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