Analyst Yi Chen of H.C. Wainwright reiterated a Buy rating on Kiora Pharmaceuticals (KPRX – Research Report), with a price target of $10.00.
Yi Chen has given his Buy rating due to a combination of factors including Kiora Pharmaceuticals’ recent financial performance and promising clinical developments. The company reported a net income of $3.6 million for 2024, alongside a total revenue of $16 million, which indicates a positive financial trajectory despite a higher-than-expected net loss in the fourth quarter. Additionally, the approval to initiate the Phase 2 ABACUS-2 trial of KIO-301 in retinitis pigmentosa (RP) is a significant milestone, with the trial expected to start patient dosing after completing validation work on functional vision endpoints later this year.
Another factor contributing to the Buy rating is the planned Phase 2 trial of KIO-104 for retinal inflammation, which is expected to begin in the second quarter of 2025. This trial aims to provide an alternative to chronic steroid use or systemic anti-inflammatory drugs. Furthermore, Kiora’s cash position of $26.8 million at the end of 2024 suggests a sufficient runway to fund operations into 2027. The valuation of KIO-301, estimated at $47 million with a 20% probability of approval, supports a 12-month price target of $10 per share. However, risks such as potential clinical trial failures and regulatory challenges remain.