Aclaris Therapeutics (ACRS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Christopher Raymond from Piper Sandler downgraded the rating on the stock to a Hold and gave it a $2.00 price target.
Christopher Raymond’s Hold rating for Aclaris Therapeutics is primarily driven by two major factors. Firstly, the disappointing Phase 2b results of ATI-450 (zunsemetinib) in rheumatoid arthritis, which failed to show efficacy, raised serious questions about the drug’s potential. This outcome was quite unexpected, given the promising signals seen in the Phase 2a trial. Moreover, the trial saw a high discontinuation rate due to side effects, adding to the drug’s unfavorable profile.
Secondly, Raymond also notes that even if ATI-1777 shows promise in the upcoming Phase 2b trial for atopic dermatitis, investor reaction might be dampened. This is because of the need for the drug to significantly differentiate from competing treatments and the necessity for a partnership to further develop the drug. Additionally, Raymond points to the company’s overall pipeline being too early to value at this point and a lowering of the multiple due to heightened pipeline risk. Thus, these factors collectively led Raymond to adopt a more cautious stance on Aclaris Therapeutics and issue a Hold rating.
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Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ACRS in relation to earlier this year.
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Aclaris Therapeutics (ACRS) Company Description:
Aclaris Therapeutics, Inc. operates as a dermatologist-led biopharmaceutical company, which engages in identifying, developing, and commercializing novel drugs to address the needs in medical and aesthetic dermatology and immunology. It operates through Therapeutics and Contract Research segments. The Therapeutics segment focuses in identifying, developing, and commercializing innovative and differentiated therapies to address significant unmet needs in medical and aesthetic dermatology. The Contract Research segment provides laboratory services under contract research arrangements to pharmaceutical and biotech companies. The company was founded by Neal S. Walker, Frank Ruffo, Kamil Ali-Jackson, Christopher V. Powala, and Stuart D. Shanler in July 2012 and is headquartered in Malvern, PA.
Read More on ACRS:
- Aclaris Therapeutics Announces Top-line Results from 12-Week Phase 2b Trial of Oral Zunsemetinib (ATI-450) for Moderate to Severe Rheumatoid Arthritis and Provides Corporate Update
- Aclaris Therapeutics call volume above normal and directionally bullish
- Aclaris Therapeutics Reports Third Quarter 2023 Financial Results and Provides a Corporate Update
- Aclaris Therapeutics reports Q3 EPS (41c), consensus (48c)
- ACRS Upcoming Earnings Report: What to Expect?
