Analyst Patrick Trucchio from H.C. Wainwright reiterated a Buy rating on Faron Pharmaceuticals Oy and keeping the price target at £10.00.
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Patrick Trucchio has given his Buy rating due to a combination of factors that highlight the potential of Faron Pharmaceuticals Oy’s lead product, bexmarilimab. The recent interim results from the Phase 1/2 BEXMAB trial have shown a significant increase in complete remission rates among patients with high-risk myelodysplastic syndrome, which strengthens confidence in the drug’s long-term benefits and reduces risks associated with the upcoming registrational program. This improvement in patient outcomes, particularly in combination with standard chemotherapy, supports the advancement to a Phase 3 trial and the possibility of accelerated approval.
Furthermore, Faron’s strategic decision to adopt the composite complete response endpoint under the updated IWG 2023 criteria aligns with regulatory standards and provides a more stringent measure of efficacy. The company’s strong performance on this new benchmark, alongside the unique mechanism of bexmarilimab that avoids common side effects like anemia, enhances its potential as a viable treatment option. The valuation of Faron is supported by a detailed financial analysis, which considers various probabilities of success across different tumor types and employs a discount rate of 12%. Despite the associated risks, such as clinical development and competition, the overall outlook and strategic positioning justify the Buy rating and the price target of £10.