Spruce Biosciences, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Joseph Schwartz from Leerink Partners maintained a Hold rating on the stock and has a $10.00 price target.
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Joseph Schwartz’s rating is based on several factors, including the promising long-term data for tralesinidase alfa, which shows potential as a treatment for MPS IIIB. The data demonstrated significant reductions in CSF HS-NRE levels, a surrogate biomarker that the FDA considers likely to predict clinical benefit, which could lead to accelerated approval. Despite these positive indicators, the Hold rating reflects a cautious stance due to the current financial position of Spruce Biosciences and the need for further confirmation through additional trials.
Additionally, while the company is making progress with its pipeline, including the initiation of a Phase 2 study for tildacerfont in major depressive disorder, there remains uncertainty regarding the outcomes and timelines of these developments. The potential for a Priority Review Voucher, which could provide non-dilutive funding, is a positive aspect, but it is contingent on future approval. Therefore, the Hold rating suggests a wait-and-see approach as the company advances its clinical programs and works towards stabilizing its financial standing.