Regulus Therapeutics (NASDAQ:RGLS) Receives Buy Rating and $10 Price Target Amid Positive Phase 1b Study Results
On Tuesday, H.C. Wainwright reaffirmed its Buy rating and $10.00 stock price target for Regulus Therapeutics (NASDAQ:RGLS) following the release of additional exploratory results from the Phase 1b study of RGLS8429 for Autosomal Dominant Polycystic Kidney Disease (ADPKD).
The study focused on high-risk patients with rapid kidney function decline, showing consistent impact on total kidney volume (TKV) with dosages of 2 mg/kg and 3 mg/kg. The safety profile met expectations, positioning RGLS8429 as a risk-mitigated asset based on the data.
Looking ahead, Regulus plans to initiate a pivotal Phase 2 trial in mid-2025 for accelerated approval, with a Phase 3 trial to confirm clinical benefits. Positive topline results from the third cohort of the Phase 1b study further support the drug's potential.
Jones Trading also maintained a Buy rating with a $8.00 price target, as Regulus progresses with enrollment for the fourth cohort and anticipates an End-of-Phase 1 meeting with the FDA.
InvestingPro Insights:
Despite promising developments, Regulus faces challenges with weak gross profit margins and no profitability over the last twelve months. However, the company's financial stability is supported by more cash than debt on its balance sheet.
InvestingPro Tips suggest that while the company is burning through cash, its liquid assets exceed short-term obligations. Analysts anticipate continued volatility in the stock price, but growing investor confidence in RGLS8429 signals potential for future growth.
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In conclusion, Regulus Therapeutics' positive study results and future trials indicate potential for growth in the treatment of ADPKD. Despite financial challenges, the company's progress in drug development and investor confidence present opportunities for long-term investors.