On Monday, H.C. Wainwright upgraded Aclaris Therapeutics (NASDAQ:ACRS) from Neutral to Buy, setting a price target of $20.00. The stock, currently trading at $2.72, has shown remarkable resilience with a 136% gain over the past six months, despite a recent 10% pullback last week.
According to InvestingPro data, analyst targets range from $5 to $13, suggesting significant upside potential. The upgrade follows Aclaris's announcement last month regarding an exclusive license agreement with Biosion, Inc. for the development of two promising antibody therapies. The company maintains a strong financial position, with InvestingPro analysis showing more cash than debt on its balance sheet and a healthy current ratio of 7.03, indicating robust liquidity to support its development programs.
Aclaris has obtained worldwide rights, excluding Greater China, to BSI-045B and BSI-502. BSI-045B is a clinical-stage monoclonal antibody targeting TSLP, and BSI-502 is a preclinical-stage bispecific antibody aimed at TSLP and IL4R. Both drugs are considered potential best-in-class therapies for conditions with significant unmet medical needs.
BSI-045B has shown a favorable profile in a Phase 2a trial for moderate-to-severe atopic dermatitis in the United States. The drug is also undergoing multiple Phase 2 studies in China for severe asthma and chronic rhinosinusitis with nasal polyps. Positive results from these trials could lead to Aclaris initiating mid-stage clinical studies in the U.S. next year.
The analyst believes BSI-045B could generate substantial revenue, potentially reaching annual sales of approximately $9.8 billion across the U.S. and European Union markets for chronic asthma and atopic dermatitis. The drug is anticipated to enter the U.S. market in 2029 for asthma and in 2030 for atopic dermatitis, with pricing estimated in the $30,000 range in the U.S. and $10,000 in Europe.
The decision to upgrade Aclaris's stock rating reflects the potential of BSI-045B to fulfill a significant market need and drive high sales, particularly after the licensing deal with Biosion. The new price target of $20.00 is set with a 12-month view, considering the drug's prospective market entry and financial forecasts.
Based on InvestingPro's Fair Value analysis, the stock appears undervalued at current levels. Subscribers can access 12 additional ProTips and a comprehensive Pro Research Report covering Aclaris's financial health, which currently rates as "GOOD" with a score of 2.62 out of 5.
In other recent news, Aclaris Therapeutics has seen a series of upgrades from various analysts following recent strategic developments. Cantor Fitzgerald shifted its stance on Aclaris, upgrading its rating from Neutral to Overweight after Aclaris announced the addition of two promising drugs, BSI-045B and BSI-502, to its portfolio. Similarly, Leerink Partners, BTIG, Jefferies, and Piper Sandler also upgraded their ratings from Market Perform to Outperform, Neutral to Buy, Hold to Buy, and Neutral to Overweight respectively.
Aclaris has secured global rights to two potential treatments for inflammatory conditions from Biosion, BSI-045B and BSI-502. These compounds have shown promise in treating atopic dermatitis and other inflammatory diseases. The company plans to advance both agents in clinical studies, with the next study for BSI-045B expected to be detailed soon and an Investigational New Drug filing for BSI-502 guided for early 2025.
Furthermore, Aclaris raised about $80 million through an oversubscribed private placement and sold a portion of its future royalty earnings from OLUMIANT to OMERS, a Canadian pension plan, for an upfront payment of $26.5 million.
These recent developments highlight Aclaris's strategic efforts to advance its programs and secure its financial position. The company has also initiated a Phase 2a trial for ATI-2138, a potential treatment for moderate-to-severe atopic dermatitis.
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