On Wednesday, Wells Fargo adjusted its price target for Regulus (NASDAQ:RGLS) Therapeutics (NASDAQ:RGLS), a biopharmaceutical company, from $2.00 to $3.00, while keeping an Equal Weight rating on the stock. The firm's decision follows the release of Cohort 2 data from a Phase 1b multiple ascending dose (MAD) study of RGLS8429 in patients with Autosomal Dominant Polycystic Kidney Disease (ADPKD).
The analyst at Wells Fargo noted that the Cohort 2 data were noteworthy, but due to the limited number of participants and the potential for variability, further evidence is anticipated from the mid-year results of Cohort 3. These upcoming results are expected to provide additional insights into the drug's effects on PD biomarkers and the relationship between PC1/PC2 alterations and total kidney volume changes.
Regulus Therapeutics recently announced the topline outcomes from Cohort 2, which involved a 2 mg/kg dose of RGLS8429. Following the data release, the company also declared the successful completion of a $100 million private investment in public equity (PIPE) deal, priced at $1.60 per share. This financial move has effectively extended the company's operational cash runway into the first half of 2026.
The proceeds from the PIPE are earmarked for expanding the size of Cohort 4, which will receive a 300 mg fixed dose. The objective is to further assess the impact of RGLS8429 on cystic volume in patients with ADPKD, a chronic genetic disorder characterized by the growth of numerous cysts in the kidneys.
InvestingPro Insights
Following the recent developments at Regulus Therapeutics (NASDAQ:RGLS), including Wells Fargo's updated price target and the company's financial strategy, there are several key metrics and InvestingPro Tips that could provide investors with a deeper understanding of the company's current position and future prospects.
InvestingPro Data indicates a Market Cap of 46.48 million USD, reflecting the company's size in the biopharmaceutical industry. Despite the positive sentiment from Wells Fargo, Regulus Therapeutics exhibits a negative P/E Ratio (Adjusted) of -1.66 for the last twelve months as of Q3 2023, underscoring the company's lack of profitability during this period. Additionally, the company's Gross Profit for the same timeframe stands at -20.1 million USD, which aligns with the challenges faced in achieving profitability.
From the InvestingPro Tips, it's noteworthy that Regulus Therapeutics holds more cash than debt on its balance sheet, which could be a stabilizing factor for the company, especially after the successful $100 million PIPE deal. However, it's also important to recognize that the company is quickly burning through cash, a critical factor for investors to consider, given the extended cash runway into the first half of 2026.
For those interested in the stock's performance, Regulus Therapeutics has experienced a significant return over the last week with a 57.33% increase. This could be a response to the recent positive announcements, but investors should be cautious as the RSI suggests the stock is in overbought territory, which might indicate a potential pullback.
To gain further insights and access to a comprehensive list of tips for Regulus Therapeutics, investors can explore the additional 13 InvestingPro Tips available at https://www.investing.com/pro/RGLS. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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