Analyst Jonathan Wolleben from JMP Securities reiterated a Buy rating on Savara (SVRA – Research Report) and keeping the price target at $8.00.
Jonathan Wolleben has given his Buy rating due to a combination of factors surrounding the anticipated outcomes from the Phase 3 IMPALA-2 trial for molgramostim. He has a positive outlook based on the drug’s potential to meet statistical significance in its primary endpoint, which is a change in diffusing capacity for carbon monoxide (DLCO) at week 24 versus placebo. Moreover, he emphasizes that the trial is sufficiently powered to detect a meaningful difference in DLCO, which is a recognized measure in assessing the progression of autoimmune pulmonary alveolar proteinosis (aPAP), the disease targeted by the drug. The expectation is that the drug will not only hit its primary endpoint but also show positive trends in key secondary endpoints, bolstering the case for its approval.
Furthermore, Wolleben posits that the design and results from the previous IMPALA trial, despite its failure, have informed improvements in the IMPALA-2 study to enhance its likelihood of success. He notes that the use of supplemental oxygen in the earlier trial may have confounded the results, an issue that does not impact DLCO measurements. With IMPALA showing a placebo-adjusted difference in DLCO greater than what is required for IMPALA-2’s success, and with the same dosing regimen being used, confidence in a favorable outcome is higher. These factors, combined with the management’s anticipation of similar rates of whole lung lavages between the treatment and placebo groups, contribute to a robust case for a Buy rating on Savara’s stock.
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Savara (SVRA) Company Description:
Savara, Inc. is a clinical-stage specialty pharmaceutical company, which engages in the development and commercialization of novel therapies for the treatment of serious or life-threatening rare respiratory diseases. Its products include AeroVanc, Molgradex, GM-CSF, and Aironite. The company was founded on April 27, 2017 and is headquartered in Austin, TX.
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