Analyst Boobalan Pachaiyappan of H.C. Wainwright reiterated a Buy rating on Gain Therapeutics (GANX – Research Report), with a price target of $9.00.
Boobalan Pachaiyappan’s Buy rating for Gain Therapeutics is anchored on the promising clinical progress of their lead therapeutic candidate, GT-02287, which has shown potential in preclinical models for treating Parkinson’s disease associated with GBA1 mutations. The drug’s mechanism of action includes restoring the function of the misfolded and dysfunctional lysosomal GCase enzyme, linked to the most common genetic risk factor for Parkinson’s. The ongoing Phase 1 trial aims to assess safety, tolerability, and pharmacokinetics, along with an exploratory endpoint that examines early clinical validation of GT-02287’s effect on GCase. Positive outcomes from this trial could pave the way for a Phase 2 study in the second half of 2024, thus reducing the investment risk through clinical validation.
Moreover, the completion of an equity financing round is expected to extend the company’s financial runway into 2025, which reinforces the analyst’s confidence in the company’s ability to continue its developmental plans without immediate financial constraints. Despite the equity dilution leading to a slight adjustment of the 12-month price target from $10 to $9, Pachaiyappan maintains a Buy rating. This adjustment accounts for the immediate impact of the equity financing on the company’s stock value, but does not diminish the potential long-term value brought about by GT-02287’s groundbreaking impact on Parkinson’s disease treatment, should it prove to be successful in clinical trials.
Pachaiyappan covers the Healthcare sector, focusing on stocks such as Brainsway, Gain Therapeutics, and Entrada Therapeutics Inc. According to TipRanks, Pachaiyappan has an average return of -2.8% and a 28.21% success rate on recommended stocks.
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Gain Therapeutics (GANX) Company Description:
Gain Therapeutics Inc is a development-stage biotechnology company developing novel therapeutics to treat diseases caused by protein misfolding, with an initial focus on lysosomal storage disorders (LSDs), including rare genetic diseases and neurological disorders. Its pipeline includes the GLB1 gene, GBA1 gene, IDUA gene, and GALC gene.
Read More on GANX:
- Gain Therapeutics announces preclinical data on class of allosteric regulators
- Gain Therapeutics Announces Closing of $10.1 Million Public Offering and Concurrent Private Placement of Common Stock and Warrants, Including Full Exercise of Over-Allotment Option
- Gain Therapeutics Announces Pricing of $9.4 Million Public Offering and Concurrent Private Placement of Common Stock and Warrants
- Gain Therapeutics prices 2.2M shares at $2.005 in public offering
- Gain Therapeutics Announces Proposed Public Offering
