Yi Chen, an analyst from H.C. Wainwright, has initiated a new Buy rating on Edesa Biotech (EDSA).
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Yi Chen has given his Buy rating due to a combination of factors including the promising potential of Edesa Biotech’s lead drug candidate, EB06, which targets CXCL10 for the treatment of vitiligo. The drug has shown the ability to prevent and reverse depigmentation in animal models, indicating a novel approach to treating this autoimmune disorder. Additionally, EB06 has demonstrated a favorable safety and tolerability profile in Phase 1 trials, with no serious adverse events reported.
The company’s strategic plans to advance EB06 into a Phase 2 trial, with approval from Health Canada and plans to submit data to the U.S. FDA, further support the Buy rating. The anticipated start of the Phase 2 trial in late 2025-early 2026, along with the potential for positive outcomes, underpins the optimistic outlook for Edesa Biotech’s stock, justifying the $5 price target set by Yi Chen.