Maxim Group analyst Jason McCarthy maintained a Buy rating on Alterity Therapeutics (ATHE – Research Report) yesterday and set a price target of $12.00.
Jason McCarthy has given his Buy rating due to a combination of factors including Alterity Therapeutics’ recent financial maneuvers and promising clinical trial results. The company has successfully strengthened its balance sheet by raising significant funds through a two-tranche financing, which could provide up to A$40 million in additional funding. This financial boost is expected to extend the company’s cash runway through CY26, providing a stable financial foundation for future operations.
Moreover, Alterity’s lead asset, ATH434, has shown positive results in Phase 2 trials for multiple system atrophy (MSA). The drug demonstrated a significant reduction in iron accumulation in the brain, a primary endpoint, and showed trends towards preserving brain volume and improving functional outcomes as measured by the Unified MSA Rating Scale. These clinical advancements, combined with the company’s strengthened financial position, underpin McCarthy’s optimistic outlook and Buy rating for Alterity Therapeutics.