Analyst Douglas Tsao from H.C. Wainwright reiterated a Buy rating on Rezolute (RZLT – Research Report) and keeping the price target at $14.00.
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Douglas Tsao’s rating is based on the recent advancements Rezolute has made in their clinical trials, particularly with the drug ersodetug for treating congenital hyperinsulinism (CHI). The company has received clearance to begin enrolling infants as young as three months into their Phase 3 SunRIZE study, which indicates a significant step forward in their research. The safety of ersodetug has been validated by data from the open-label arm of the study, which supports the continuation of the trial into its double-blind phase.
Additionally, Rezolute’s strategic positioning is strengthened by the Breakthrough Therapy Designation granted by the FDA, which is anticipated to expedite patient enrollment in the US. The company’s valuation takes into account the potential future revenues, adjusted for the probability of success of their various pipeline assets. Despite some financial and regulatory risks, including the need for additional capital and lack of current product approvals, the robust efficacy data from earlier trials and the strategic progress in their clinical programs underpin the Buy rating with a price target of $14.
Tsao covers the Healthcare sector, focusing on stocks such as Coherus Biosciences, Protagonist Therapeutics, and Cabaletta Bio. According to TipRanks, Tsao has an average return of 11.9% and a 41.96% success rate on recommended stocks.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $15.00 price target.