Eloxx Pharmaceuticals (NASDAQ: ELOX) Stock jumped 5% in the pre-market session an analyst at B. Riley Securities started coverage on the stock with a Buy rating and set a price of $5
Riley Securities initiates ELOX with a Buy and price target of $5. Analyst Mayank Mamtani stated, “ELOX is a clinical-stage biotech emerging as a leader in the ribosomal RNA-targeted genetic therapies, particularly following the recent acquisition of Zikani Therapeutics. We believe the combined entity, now led by a seasoned Zikani team, is well positioned to maximize the potential of complementary platforms targeting the human ribosome. These small molecule therapies are designed to improve read-through activity aimed at correcting nonsense mutations, which are identified as key drivers of 1.5k+ rare disease and oncology indications.
ELOX’s most advanced candidate, ELX-02, is aimed at restoring the translation of full-length functional proteins and limiting messenger RNA degradation. ELX-02 is now being tested in a Phase II study in cystic fibrosis patients. We expect a monotherapy readout for this intra-patient, dose-escalation study in 2H21, followed by a readout in early 2022E from the recently initiated fifth treatment arm combining ELX-02 with Vertex Pharmaceuticals’ Kalydeco.
Notably, we believe this would also establish strong proof of concept for emerging highly potent macrolide-based oral candidates from ELOX’s TURBO-ZM platform to address potentially sizeable market opportunities in rare diseases such as recessive dystrophic epidermolysis bullosa (RDEB). Furthermore, we estimate that ELOX’s recent $52M equity raise strengthens the balance sheet and extends the company’s runway into late 2022.”
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