Maxim Group analyst Jason McCarthy maintained a Buy rating on Acurx Pharmaceuticals (ACXP – Research Report) yesterday and set a price target of $10.00.
Jason McCarthy’s Buy rating for Acurx Pharmaceuticals’ stock (ACXP) can be attributed to a series of factors. Firstly, Acurx has recently announced promising top-line data from its P2b study of ibezapolstat, an antibiotic used for C difficile infection. The results indicate a high clinical cure rate at day 10, which aligns with previous study results, and further data is expected soon. McCarthy believes that the positive results from the early termination of the P2b trial, along with the data from P2a, might provide enough compelling evidence to move the drug into a P3 program.
McCarthy also pointed out that ACXP shares are currently undervalued, having fallen around 30% following the news. This drop is seen as an overreaction, possibly due to a ‘sell the news’ reaction or profit-taking. Furthermore, the potential for Acurx’s drug to replace vancomycin in treatment guidelines, given the growing resistance to both vancomycin and fidaxomicin, adds to its appeal. The company’s solid cash position and potential for additional inflow from warrant exercises also make it an attractive investment. Finally, McCarthy expects the upcoming data on lack of recurrences and gut microbiome from the P2b patients to mirror the positive results from the P2a study, which would further position Acurx favourably for an end-of-phase 2 meeting in the first half of 2024.
In another report released yesterday, H.C. Wainwright also maintained a Buy rating on the stock with a $13.00 price target.
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Acurx Pharmaceuticals (ACXP) Company Description:
Acurx Pharmaceuticals Inc is a clinical stage biopharmaceutical company developing a new class of antibiotics for infections caused by bacteria listed as priority pathogens by the World Health Organization, Centers for Disease Control and Prevention, and Food and Drug Administration.
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