On Tuesday, H.C. Wainwright adjusted its price target for Inozyme Pharma Inc. (NASDAQ:INZY), reducing it to $14 from the previous $16, while continuing to endorse a Buy rating for the stock. This adjustment follows the release of topline data from Inozyme's Phase 1/2 clinical trial for INZ-701 in adults with ABCC6 Deficiency.
Inozyme Pharma disclosed the trial results yesterday, detailing the outcomes of its study on INZ-701, an enzyme replacement therapy aimed at treating mineralization disorders. The therapy has received Orphan Drug Designation from both the FDA and EMA for ABCC6 Deficiency treatment.
This genetic condition, a result of mutations in the ABCC6 gene, can lead to Pseudoxanthoma Elasticum (PXE), characterized by calcification in soft connective tissues affecting the eyes, cardiovascular system, and skin.
The Phase 1/2 trial included 10 adults who have ABCC6 Deficiency and a significant disease burden, such as serious cardiovascular and retinal diseases. Participants were divided into three dosage groups: 0.2mg/kg, 0.6mg/kg, and 1.8mg/kg. The study successfully met its objectives, although it was noted that the positive responses did not correlate with the dosage levels.
The company reported that patients receiving the highest dose of 1.8mg/kg exhibited rapid increases in pyrophosphate (PPi) levels, which were sustained and comparable to those seen in healthy subjects from another study. Additionally, while some anti-drug antibody (ADA) titers were detected, they were low to moderate, transient, and non-neutralizing. There was no apparent link between the dose administered and the ADA titer levels, nor did the ADAs seem to have a clinical impact.
Furthermore, Inozyme announced that all dose cohorts saw stabilization or reduction in carotid intima-media thickness (cIMT), a marker that can predict cardiovascular disease and stroke risk. This was observed in seven out of eight patients who could be evaluated. In terms of ocular health, seven out of eight evaluable patients experienced an increase in choroidal thickness following treatment with INZ-701, which is significant as choroidal thinning is associated with degenerative retinal changes.
The reiteration of the Buy rating by H.C. Wainwright, despite the lowered price target, reflects the firm's continued confidence in the potential of INZ-701 as a treatment for ABCC6 Deficiency and its related conditions.
InvestingPro Insights
As Inozyme Pharma Inc. (NASDAQ:INZY) navigates the clinical trial landscape for its promising enzyme replacement therapy, INZ-701, investors and analysts are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Inozyme Pharma currently holds a market capitalization of $362.6 million, with a negative Price/Earnings (P/E) ratio of -4.26, reflecting the company's current lack of profitability. Nevertheless, the company's liquid assets surpass its short-term obligations, providing some financial stability as it continues to invest in research and development.
While Inozyme Pharma does not pay dividends, which is common for growth-focused biotech firms, the stock has experienced a significant price uptick over the last six months, with a 57.37% return. This suggests increased investor optimism about the company's future prospects. However, the stock has taken a hit over the last week, with a price total return of -15.3%, which could be a reaction to recent developments or broader market conditions.
Investors looking for a more in-depth analysis can find additional InvestingPro Tips on the company's financials and stock performance. For instance, while Inozyme Pharma holds more cash than debt on its balance sheet, it is quickly burning through cash, and analysts do not anticipate the company will be profitable this year. Moreover, the company suffers from weak gross profit margins and has not been profitable over the last twelve months. On a positive note, the stock has shown a strong return over the last three months, which may interest some investors.
To explore these insights further and access a comprehensive list of tips, readers can visit InvestingPro. Those interested in subscribing to InvestingPro for additional insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 9 additional InvestingPro Tips available for Inozyme Pharma, offering a deeper dive into the company's financial nuances and investment potential.
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