Analyst Swayampakula Ramakanth of H.C. Wainwright maintained a Buy rating on ALX Oncology Holdings, retaining the price target of $2.00.
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Swayampakula Ramakanth has given his Buy rating due to a combination of factors related to ALX Oncology Holdings’ strategic focus and promising developments. The company has shown encouraging results from a post-hoc analysis of their ASPEN-06 study, which indicates a potential link between CD47 expression and the effectiveness of their treatment, evorpacept, in combination with other drugs for gastric/GEJ cancers. This has led to an amendment in the ASPEN-BREAST trial design, aiming to further explore this relationship, with patient enrollment expected to begin soon and interim analysis planned for next year.
Additionally, ALX Oncology is advancing its anti-EGFR ADC program, ALX2004, with the first patient dosing in a Phase 1b trial anticipated shortly. Despite the early stage of this program, it is considered a high priority due to its significant potential. Furthermore, the company has strategically paused its ASPEN-CRC trial to concentrate resources on breast cancer development, thereby extending its financial runway. This focused approach, along with the projected U.S. launch of evorpacept in 2032, supports the positive outlook and Buy rating.
Ramakanth covers the Healthcare sector, focusing on stocks such as Eton Pharmaceuticals, Precigen, and Corcept Therapeutics. According to TipRanks, Ramakanth has an average return of 7.3% and a 38.00% success rate on recommended stocks.