Maintaining Caution: AN2 Therapeutics Hold Rating Amidst Epetraborole Trial Uncertainties

Analyst Joseph Schwartz of Leerink Partners maintained a Hold rating on AN2 Therapeutics, Inc. (ANTX – Research Report), reducing the price target to $5.00.

Joseph Schwartz has given his Hold rating due to a combination of factors influencing the current state and future prospects of AN2 Therapeutics, Inc. In his analysis, Schwartz acknowledges that the company has provided some promising updates regarding the enrollment criteria for their Phase 2/3 study of epetraborole. However, the observed response rates have not met initial expectations, which warrants caution. The potential for the drug to show a distinct effect compared to placebo in more severely affected patients could be an upside, yet the conclusive results required to instill confidence in the drug’s efficacy are not yet available. Schwartz opts for a cautious stance until further data is released in August, maintaining a Market Perform rating and lowering the price target.
Moreover, an unexpected setback announced in February 2024 has prompted a reassessment of the program’s potential. The company’s revelation of lower than anticipated efficacy rates in their ongoing Phase 2 trial indicates possible changes in the study’s design for Phase 3, including focusing on specific patient subgroups. While management remains optimistic, noting the enrollment of patients with more severe conditions than anticipated, this does not fully alleviate concerns. The complexity of the patients’ comorbidities and disease severity adds another layer of uncertainty. As such, Schwartz awaits additional data and the company’s strategic approach to Phase 3 before gaining the confidence needed to potentially adjust the rating.

According to TipRanks, Schwartz is a 2-star analyst with an average return of 0.1% and a 41.06% success rate. Schwartz covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, KalVista Pharmaceuticals, and Solid Biosciences.

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AN2 Therapeutics, Inc. (ANTX) Company Description:

AN2 Therapeutics Inc is a clinical-stage biopharmaceutical company developing treatments for rare, chronic, and serious infectious diseases with high unmet needs. The initial product candidate is epetraborole, a once-daily oral treatment for patients with chronic non-tuberculous mycobacterial, or NTM, lung disease.