On Friday, H.C. Wainwright adjusted its outlook on Barinthus Biotherapeutics (NASDAQ:BRNS), reducing the price target to $5 from the previous $8 while still recommending a Buy rating for the stock. The revision comes in response to the company’s announcement on Wednesday, June 12, detailing a strategic shift to prioritize its development pipeline. This change in focus will concentrate efforts on VTP-300 for chronic Hepatitis B (CHB) infection and VTP-1000 for celiac disease.
Barinthus Biotherapeutics has confirmed the completion of the ongoing Phase 1 trial of VTP-850 for prostate cancer. Alongside this pipeline prioritization, the company announced a significant reduction of its workforce by approximately 25%. This decision is aimed at streamlining operations and is expected to extend the company's cash runway into the second quarter of 2026. The restructuring follows the presentation of positive data for VTP-300 at the European Association for the Study of the Liver (EASL) Congress 2024.
The firm's strategic changes are designed to enable the efficient advancement of the clinical programs for VTP-300 and VTP-1000 with the existing resources. H.C. Wainwright has adjusted its financial model to reflect only the future revenue projections of these two prioritized programs. The estimated market value of Barinthus Biotherapeutics is now approximately $210 million.
Given the number of shares expected to be outstanding at the end of the second quarter of 2025, which is about 41.5 million, the valuation equates to $5 per share. The analyst firm has reiterated its Buy rating for Barinthus Biotherapeutics but has revised the 12-month price target to reflect these recent developments and strategic refocusing efforts by the company.
In other recent news, Barinthus Biotherapeutics has strategically refocused its pipeline to concentrate on two key programs: VTP-300 for chronic Hepatitis B and VTP-1000 for celiac disease. This decision comes after positive interim Phase 2 trial results for VTP-300 and pre-clinical data for VTP-1000. In addition, the company plans to complete the ongoing Phase 1 clinical trial of VTP-850 in prostate cancer, resulting in an anticipated workforce reduction of about 25%.
In other staffing news, Dr. Leon Hooftman, with over 25 years of experience in drug development, has been appointed as Chief Medical Officer. His previous roles at companies such as Roche and UCB Celltech are expected to add significant value to Barinthus Bio's leadership team.
In terms of clinical trials, the company reported mixed results from the APOLLO trial of VTP-200, a treatment for cervical lesions associated with high-risk HPV infections. While the treatment was found to be well-tolerated with no severe adverse events, there was no statistically significant improvement compared to the placebo group when data from all active dose groups were pooled.
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