BioAtla, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Justin Zelin from BTIG maintained a Buy rating on the stock and has a $10.00 price target.
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Justin Zelin has given his Buy rating due to a combination of factors related to BioAtla’s promising developments with their drug candidate, Ozuriftamab Vedotin. The company recently received positive feedback from the FDA regarding their Phase 3 trial design, dosing regimen, and endpoints, which aligns with the potential for accelerated approval. This drug has shown compelling Phase 2 data in treating 2L+ HPV+ oropharyngeal squamous cell carcinoma (OPSCC) patients, indicating a differentiated response rate compared to other treatments.
Moreover, the potential for accelerated approval is significant, as it hinges on a statistically significant improvement in the objective response rate and a well-characterized duration of response without negatively impacting overall survival. The initiation of the first Phase 3 trial for a CAB ADC is seen as a validation of the broader technology. Additionally, BioAtla’s management is actively seeking a strategic partner to advance this program, which could enhance the drug’s market opportunity and path to registration. The valuation of BioAtla, based on a discounted cash flow analysis, further supports the Buy rating.
According to TipRanks, Zelin is a 3-star analyst with an average return of 4.9% and a 34.85% success rate. Zelin covers the Healthcare sector, focusing on stocks such as Verastem, Jasper Therapeutics, and Viking Therapeutics.