On Monday, Atossa Genetics (NASDAQ:ATOS) received a Buy rating from H.C. Wainwright, with a new price target set at $4.00. The biopharmaceutical company, which specializes in developing drugs to treat breast cancer, was recognized for its promising pipeline centered around Z-endoxifen, an active metabolite of the drug tamoxifen.
Tamoxifen, approved in 1977, requires metabolic conversion to its active form, endoxifen, to be effective in treating advanced breast cancer. Atossa's focus is on Z-endoxifen, which is a more potent isomer of endoxifen and is currently being evaluated for its efficacy and safety profile. Compared to tamoxifen, Z-endoxifen has a shorter half-life and reaches a steady-state more rapidly, which could lead to a quicker onset of action and potentially a better safety profile.
Atossa is actively conducting a Phase 2 study named Karisma, which aims to assess the impact of Z-endoxifen on reducing measurable breast density. Initial data from this study is expected in the second half of 2024. Another Phase 2 study, EVANGELINE, is exploring the treatment of neoadjuvant breast cancer with Z-endoxifen, with topline data anticipated in the third quarter of 2026. There may also be interim data available before this date.
Furthermore, Atossa Genetics is participating in a collaborative study known as I-SPY-2 with Quantum (NASDAQ:QMCO) Leap Healthcare Collaborative. This study is treating 20 patients with neoadjuvant breast cancer using Z-endoxifen, with initial findings projected to be released in the second half of 2024.
The endorsement of Atossa's stock comes at a time when its share price is hovering near cash levels. According to H.C. Wainwright, the market has not yet recognized the value of Atossa's pipeline, and the firm sees a significant opportunity for share price appreciation, particularly with the anticipated data releases in the latter half of 2024.
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