On Monday, H.C. Wainwright maintained its Buy rating and $70.00 stock target for Disc Medicine (NASDAQ: iRON), following the presentation of encouraging interim data from a Phase 1b study. The study evaluated DISC-0974, a monoclonal antibody (mAb) designed to suppress hepcidin, in patients with non-dialysis dependent chronic kidney disease (NDD-CKD) and anemia.
The data, revealed at the 2024 ASN Kidney Week, showed that a single dose of DISC-0974 effectively lowered hepcidin levels, mobilized iron, and increased erythropoiesis and hemoglobin levels in patients. This early data supports the mechanism of action (MOA) of DISC-0974, which had previously shown promise in treating myelofibrosis (MF) patients.
The interim results of the single ascending dose (SAD) portion of the study included participants with stage 2-5 NDD-CKD. The patients received either a placebo (n=7) or DISC-0974 subcutaneously at varying doses: 28mg (n=9), 40mg (n=6), or 60mg (n=60). According to company management, dose escalation in the SAD study is ongoing, with plans to increase up to 90mg.
H.C. Wainwright's reiteration of the Buy rating and price target comes as the firm acknowledges the potential of DISC-0974 in the treatment of anemia associated with CKD. The analyst's remarks highlighted the positive data as a strong early validation of the drug's MOA.
In other recent news, Disc Medicine has been making significant progress in its clinical trials and operations. The biopharmaceutical company reported new findings from its Phase 1b study of DISC-0974 in patients with non-dialysis-dependent chronic kidney disease (NDD-CKD) and anemia, revealing that a single dose of DISC-0974 significantly reduces hepcidin levels and improves iron mobilization and hemoglobin levels in patients.
In addition, Disc Medicine reported encouraging Phase 2 results for its lead drug candidate, bitopertin, aimed at treating Erythropoietic Protoporphyria (EPP).
The company has also made key appointments, welcoming Dr. Rahul Rajan Kaushik as Chief Technical Officer and Dr. Steve Caffé as Chief Regulatory Officer, both bringing over two decades of experience in the pharmaceutical industry.
On the analyst front, Disc Medicine received a Buy rating from Jefferies and an Overweight rating from Wells Fargo. BMO Capital Markets revised its outlook, raising the price target to $70 from $50.
Furthermore, Disc Medicine announced a public stock offering of approximately $178 million, led by Frazier Life Sciences and Logos Capital. The proceeds will be used to advance research and clinical development of its product candidates, including bitopertin. These are the recent developments in the operations of Disc Medicine as it continues to develop treatments for serious hematologic diseases.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Disc Medicine's financial position and market performance, providing context to the company's ongoing clinical developments. Despite the promising interim results for DISC-0974, InvestingPro Tips indicate that Disc Medicine is not currently profitable and net income is expected to drop this year. This aligns with the company's focus on research and development, which often requires significant investment before reaching profitability.
However, it's worth noting that Disc Medicine holds more cash than debt on its balance sheet, suggesting a solid financial foundation to support its ongoing clinical trials. The stock has experienced a significant 67.01% price increase over the past six months, reflecting investor optimism about the company's pipeline, including the DISC-0974 study.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Disc Medicine, providing a deeper understanding of the company's financial health and market position.
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