Landos Biopharma (LABP) shares have gained more 55.7% in the past six months, representing a good margin of return for the shareholders.
Shareholders can expect the share price to continue trading higher. So, I am bullish on this stock. (See LABP stock charts on TipRanks)
Based in Blacksburg, Virginia, Landos Biopharma is a late-clinical-stage biopharmaceutical discoverer and developer of innovative therapies that the company wishes to commercialize as a treatment for autoimmune diseases.
Specifically, the company would like to commercialize pills as a treatment for ulcerative colitis, Crohn’s disease, and eosinophilic esophagitis, in addition to topical formulations for the treatment of skin diseases such as psoriasis and atopic dermatitis.
From the Q2 Earnings Report
Although Landos is not selling any products yet, the second quarter of 2021 closed with a net profit of $4.1 million, thanks to a non-recurring cash payment of $18 million.
The payment was for certain collaboration agreements targeting the commercialization of specific Landos treatments in China and other Asian countries.
Future Perspectives
The development of Omilancor, a treatment for mild-to-moderate ulcerative colitis, should be in its final stages.
In the first part of 2022, promising outcomes are expected from two additional clinical trials, according to Landos.
Ulcerative colitis is a chronic inflammation of the wall of the large intestine.
The treatment sees the pathology as the effect of an autoimmune disease. However, like any other inflammatory bowel disease, ulcerative colitis can also derive from an imbalance in the intestinal flora.
The latter is a very common metabolic disfunction in industrialized nations, as it is associated with unhealthy lifestyles frequently observed in modern society. That's where we get the incredible catalyst for the future possibilities of Landos' treatment.
Wall Street’s Take
In the past three months, three Wall Street analysts have issued a 12-month price target for LABP. The average Landos Biopharma price target is $31.33, implying 109.3% upside. The analyst rating consensus is a Strong Buy rating, based on three Buy ratings.
Summary
Landos is in the last stage concerning the development of its lead candidate for chronic inflammatory bowel conditions.
The next stage is its launch. In between, there is approval from the authority. If everything goes as planned, the stock will be trading as a commercial-stage healthcare company.
The share price may receive an unbelievable boost for additional upsides.
Disclosure: At the time of publication, Alberto Abaterusso did not have a position in any of the securities mentioned in this article.
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