On Monday, Longboard Pharmaceuticals Inc (NASDAQ: LBPH) saw its price target increased to $36.00 from $30.00, while its stock rating remained a Buy, as announced by a B.Riley analyst. This adjustment follows Longboard Pharma's release of additional data from the PACIFIC study concerning their drug candidate, bexicaserin.
The company provided an update from the open-label extension (OLE) of the PACIFIC study for bexicaserin, a drug under investigation for its effects on seizures. The OLE data revealed a median seizure reduction of approximately 56% in countable motor seizures over a span of around six months among 40 participants.
The study highlighted a significant median seizure reduction for patients who were initially given a placebo and then switched to bexicaserin, experiencing a 57% decrease in seizures. This contrasted with a mere 17% reduction they had while on the placebo.
The analyst from B.Riley cited these findings as a reinforcement of the initial results from the PACIFIC study released earlier in the year. Based on the new data, the analyst raised the probability of success for bexicaserin from 45% to 60%. The recent long-term follow-up data was consistent with the earlier top-line results, providing further confidence in the drug's potential efficacy.
The current trading price of Longboard Pharma's stock, which is around $17, was deemed attractive by the analyst, especially in comparison to its previous range of approximately $20 to $25. This range was established following the initial results from the PACIFIC study. The analyst's decision to maintain a Buy rating and increase the price target reflects a positive outlook on the company's valuation and the future prospects of bexicaserin.
In other recent news, Longboard Pharmaceuticals has been making significant strides in the biopharmaceutical sector. The company's novel therapeutic candidate, bexicaserin, designed for neurological disorders, has shown promising results in the Phase 1b/2a PACIFIC trial.
Following the completion of the PACIFIC trial, all participants have entered an open-label extension (OLE) trial, with data expected in the second half of 2024. Analysts at H.C. Wainwright & Co and Cantor Fitzgerald maintain a bullish stance on Longboard, both maintaining a price target of $60. Baird has also initiated coverage with an Outperform rating and a price target of $36.00.
These recent developments set the stage for an end-of-Phase-2 meeting with the FDA, where Longboard will discuss the design of the Phase 3 program. This meeting is a critical milestone for the company, potentially paving the way for Phase 3 trials of bexicaserin.
Despite the challenges associated with transitioning from early-stage to late-stage clinical development, the company's recent successes and the analysts' positive outlook indicate a promising future for Longboard Pharmaceuticals.
InvestingPro Insights
Following the recent developments at Longboard Pharmaceuticals Inc (NASDAQ: LBPH), InvestingPro data provides an additional perspective on the company's financial health and market performance. With a market capitalization of $699.45 million, Longboard Pharmaceuticals is navigating the biopharmaceutical landscape with a significant focus on their developmental pipeline.
Notably, the company's P/E ratio stands at -8.07, reflecting market expectations of future earnings potential despite current unprofitability. InvestingPro Tips highlight that Longboard Pharmaceuticals holds more cash than debt, which could provide financial flexibility as they advance their clinical trials. Moreover, the company's liquid assets exceed short-term obligations, indicating a solid position to meet immediate financial needs.
InvestingPro Tips also reveal that two analysts have revised their earnings upwards for the upcoming period, suggesting a growing optimism in the company's operational prospects. Still, it is important to note that analysts do not anticipate the company will be profitable this year, and the firm suffers from weak gross profit margins.
Despite these challenges, Longboard Pharmaceuticals has experienced a high return over the last year, with a 135.57% one-year price total return as of the latest available data. This performance is underscored by a large price uptick over the last six months, boasting a 286.56% return, reflecting a surge in investor confidence.
For readers looking to delve deeper into Longboard Pharmaceuticals’ financials and market potential, InvestingPro offers additional insights. There are more InvestingPro Tips available, which could further inform investment decisions. Readers can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Visit https://www.investing.com/pro/LBPH to explore these resources and gain a comprehensive understanding of Longboard Pharmaceuticals' investment profile.
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