On Tuesday, H.C. Wainwright maintained its buy rating and $10.00 price target for Savara Inc. (NASDAQ:SVRA), a biopharmaceutical company. This affirmation follows insights from a key opinion leader (KOL) at the CHEST Annual Meeting held in Boston, MA, from October 6-9, 2024.
The discussion with the KOL revealed concerns about the level of interest among clinicians in testing for autoimmune pulmonary alveolar proteinosis (aPAP), a rare lung disease that Savara is targeting. Despite encountering several doctors with aPAP patients at their clinics, there seemed to be a lack of interest in obtaining information regarding access to testing.
This observation contrasts with the objectives presented at Savara's recent Investor Day, which emphasized the importance of identifying patients through various methods, including testing.
Savara has been proactive in facilitating the diagnosis of aPAP by offering a no-cost autoantibody blood test called ClearPath. The company also plans to introduce a dried blood spot assay in the first half of 2025, which is expected to serve as an additional diagnostic tool for the condition.
The analyst from H.C. Wainwright reiterated the firm's confidence in Savara, upholding the buy rating and the $10.00 per share price target. The target reflects the potential value seen in the company's efforts to improve the diagnosis and treatment of aPAP. Despite the concerns raised regarding clinician engagement, the firm's stance on Savara remains unchanged.
In other recent news, Savara Inc. reported earnings per share at ($0.12), slightly below the ($0.10) forecasted by Oppenheimer and consensus estimates. Despite this, Oppenheimer, H.C. Wainwright, and Piper Sandler maintained positive ratings on Savara. The company has also announced a $100 million stock offering of 26,246,720 shares managed by firms such as Jefferies, Piper Sandler, and Guggenheim Securities.
Savara recently launched an Expanded Access Program for molgramostim, a potential treatment for autoimmune Pulmonary Alveolar Proteinosis (aPAP). The company is working towards submitting a Biologics License Application for molgramostim to the FDA in the first half of 2025. Savara also announced the appointment of Braden Parker as the new Chief Commercial Officer, bringing over 25 years of experience in the healthcare and biotech industry.
InvestingPro Insights
While H.C. Wainwright maintains a bullish outlook on Savara Inc. (NASDAQ:SVRA), recent InvestingPro data provides additional context for investors. The company's market capitalization stands at $615.61 million, with a price-to-book ratio of 6.05 as of the last twelve months ending Q2 2024. This high P/B multiple suggests investors are paying a premium for the company's assets, possibly due to expectations of future growth or the potential of its aPAP treatments.
InvestingPro Tips highlight that Savara holds more cash than debt on its balance sheet, which could provide financial flexibility as the company works to increase clinician engagement and expand its diagnostic offerings. However, it's worth noting that the company is not profitable over the last twelve months, with a negative gross profit of $45.63 million in the same period.
The stock's recent performance has been challenging, with a 15.38% decline over the past month. This aligns with the InvestingPro Tip indicating that the stock has fared poorly over the last month, possibly reflecting market concerns about clinician interest in aPAP testing.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Savara, providing a deeper understanding of the company's financial health and market position.
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