Tuesday, H.C. Wainwright maintained a Buy rating and an $18.00 stock price target on Can-Fite BioPharma (NYSE: NYSE:CANF), following the biopharmaceutical company's announcement on November 11 that it had started dosing the first patient in a Phase 2a clinical trial. This trial is for namodenoson, a treatment aimed at patients with advanced pancreatic adenocarcinoma (PDAC).
The Phase 2a study is a multicenter, open-label trial anticipated to enroll 20 patients whose disease has progressed after at least first-line therapy. The therapies include FOLFIRINOX or gemcitabine-nab-paclitaxel, recommended treatments for patients who are unable to access or tolerate FOLFIRINOX due to its significant toxicities. All participants in the trial will receive twice daily oral namodenoson 25mg for 28 days.
Namodenoson is a small, orally bioavailable drug that targets the A3 adenosine receptor (A3AR), which is highly expressed in diseased cells and at low levels in normal cells. The drug has previously received FDA Fast Track and Orphan Drug designation for second-line hepatocellular carcinoma (HCC), and in the previous month, it was granted Orphan Drug designation by the FDA for pancreatic cancer.
The analyst expressed optimism about the expansion of namodenoson's indications and the potential for Can-Fite's drug to offer a new treatment approach for PDAC patients. Currently, there is a significant gap in effective treatment options for this patient population, and if namodenoson demonstrates safety, tolerability, and efficacy, it could be a catalyst for the company.
H.C. Wainwright reiterated their positive stance on Can-Fite BioPharma, citing the commencement of the Phase 2a trial as a potential driver for future valuation. The firm remains attentive to the outcomes of this proof-of-concept trial, which could influence their financial models if the results are positive.
In other recent news, Can-Fite BioPharma has made significant strides in its clinical trials and drug development. The company recently began dosing the first patient in a Phase 2a clinical trial for namodenoson, a drug being evaluated for patients with advanced pancreatic adenocarcinoma.
The company also secured a patent in Australia for namodenoson, which is being developed to treat obesity and various cancers. The patent covers methods of treating obesity through oral administration of the drug. This comes as Can-Fite's partner, Vetbiolix, secured a $325 million licensing agreement following positive results from a clinical study on canine osteoarthritis, evaluating the efficacy of Piclidenoson.
However, Can-Fite BioPharma reported a decrease in its revenues for the first half of 2024, dropping to $0.32 million from $0.39 million in the same period last year. Despite this, the net loss improved to $3.95 million, largely due to reduced operating expenses.
EF Hutton has upgraded Can-Fite BioPharma to a Buy rating, citing the potential of its pipeline drugs, Namodenoson and Piclidenoson. These are among the recent developments that highlight the company's ongoing commitment to drug development and clinical trials.
InvestingPro Insights
Recent InvestingPro data provides additional context to Can-Fite BioPharma's (NYSE: CANF) financial position as it embarks on this crucial Phase 2a trial. The company's revenue for the last twelve months as of Q2 2024 stood at $0.67 million, with a revenue decline of 15.89% over the same period. This aligns with an InvestingPro Tip indicating that Can-Fite is "quickly burning through cash," which is not uncommon for biotech companies in the research and development phase.
Despite the cash burn, another InvestingPro Tip reveals that Can-Fite "holds more cash than debt on its balance sheet," suggesting a degree of financial stability as it pursues its clinical trials. This could be crucial for the company's ability to fund the ongoing namodenoson study and potential future trials.
The company's Price to Book ratio of 5.94 indicates that investors are placing a premium on Can-Fite's potential, possibly due to the promising developments in its drug pipeline. However, with a negative P/E ratio and the InvestingPro Tip that "analysts do not anticipate the company will be profitable this year," it's clear that Can-Fite is still in a growth and development phase, typical of many biotech firms pursuing breakthrough treatments.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into Can-Fite's financial health and market position.
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