Leerink Partners maintained an Outperform rating and a $13.00 price target for Benitec BioPharma (NASDAQ:BNTC). This decision follows the company's announcement of its fourth-quarter 2024 results and updates on its pipeline. Benitec revealed interim data for the first subject in the low-dose cohort of its Phase 1b/2a study of BB-301 for the treatment of oculopharyngeal muscular dystrophy (OPMD), with no serious adverse events reported for the two subjects treated to date.
The company is scheduled to present a late-breaking abstract at the World Muscle Society Annual Congress on October 12th in Prague, Czech Republic. This presentation will summarize the interim clinical data from the ongoing study. The subjects in the study were dosed in December 2023 and February 2024, and the third subject is expected to receive the low-dose BB-301 treatment in the fourth quarter of 2024, a slight delay from the previously anticipated third quarter.
Benitec's BB-301 is an AAV9-based gene therapy, and the clinical trial aims to evaluate its safety and clinical activity. In the absence of validated regulatory endpoints, the study utilizes Total Pharyngeal Residue (TPR) and Sydney Swallow Questionnaire (SSQ) to measure clinical benefits and to assess the durability and tempo of the response, which will guide the development timelines.
Leerink has updated its financial model for Benitec BioPharma to reflect the latest disclosures. The firm's reiteration of the Outperform rating and $13 price target is based on these updates and the progress of the clinical program for BB-301.
In other recent news, Benitec BioPharma has been making significant strides in its clinical development program. The company's BB-301 therapy for oculopharyngeal muscular dystrophy (OPMD) has shown sustained improvements in swallowing function in a patient, a positive outcome observed at both the 90-day and 180-day post-treatment marks. Furthermore, the company's shareholders approved the Third Plan Amendment to the 2020 Equity and Incentive Compensation Plan, a strategic initiative aimed at refining the existing compensation plan for certain officers.
Benitec also welcomed Kishen Mehta, a portfolio manager at Suvretta Capital, to its Board of Directors following a $40 million private investment by Suvretta Capital. This appointment is part of the company's strategy to strengthen its governance as it advances the Phase 1b/2a study of BB-301.
Analysts from Piper Sandler and JMP Securities have expressed confidence in Benitec, maintaining their Overweight and Market Outperform ratings, respectively. Piper Sandler reaffirmed its price target of $30.00, citing the potential of the BB-301 program. JMP Securities, on the other hand, increased their price target from $10.00 to $16.00, also citing the success of BB-301.
InvestingPro Insights
As Benitec BioPharma (NASDAQ:BNTC) continues to develop its BB-301 gene therapy, investors and analysts are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Benitec BioPharma holds a market cap of approximately $88.66 million, which is a critical factor for investors assessing the size and scale of the company in the biopharmaceutical industry.
In terms of financial performance, Benitec's revenue for the last twelve months as of Q3 2024 stands at a mere $0.01 million, indicating a significant decline of 89.71% from the previous period. This could be a point of concern for investors considering the company's ability to fund ongoing research and development activities. Additionally, the company's gross profit margin is extraordinarily high at 1642.86%, which may reflect unique accounting measures or non-recurring events rather than sustainable profitability.
InvestingPro Tips suggest that Benitec BioPharma is quickly burning through cash and analysts do not anticipate the company will be profitable this year. This information is particularly relevant for investors who are evaluating the risk profile of their investment in light of the company's cash runway and the need for potential future capital raises.
Despite these challenges, Benitec has experienced a strong return over the last year, with the stock price total return reaching 194.97%. This could signify investor optimism about the company's long-term prospects or a reaction to specific developments within the company.
Investors interested in a deeper dive into Benitec's financials and stock performance can find additional InvestingPro Tips at https://www.investing.com/pro/BNTC, which includes a comprehensive list of metrics and expert insights to help make informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.