Analyst Sara Nik from H.C. Wainwright reiterated a Buy rating on Moleculin Biotech (MBRX – Research Report) and keeping the price target at $4.00.
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Sara Nik’s rating is based on several promising developments surrounding Moleculin Biotech’s lead drug candidate, annamycin. The company received positive feedback from the FDA regarding its Initial Pediatric Study Plan, which is a significant step towards evaluating annamycin in pediatric cancer patients. This regulatory progress highlights the potential of annamycin as a second-line therapy for relapsed/refractory acute myeloid leukemia in children, especially given its lack of cardiotoxicity, a common issue with current anthracyclines.
Sara Nik also considers the ongoing Phase 3 MIRACLE trial, which could position annamycin for accelerated approval in adult AML patients, as a major value driver. The trial’s adaptive design and potential for early efficacy and safety readouts could expedite the drug’s path to market. Additionally, the valuation model supporting the Buy rating incorporates a clinical net present value approach, emphasizing annamycin’s potential in both AML and STS lung metastases, while also considering future partnership opportunities and market expansion possibilities.
In another report released on June 4, Maxim Group also maintained a Buy rating on the stock with a $4.00 price target.