Artelo Biosciences: Strong Buy Rating on Clinical Advancement and Solid Financials

In a report released today, Vernon Bernardino from H.C. Wainwright reiterated a Buy rating on Artelo Biosciences (ARTL – Research Report), with a price target of $5.00.

Vernon Bernardino has given his Buy rating due to a combination of factors surrounding Artelo Biosciences’ progress and potential in its clinical programs. A key element is the advancement of the Cancer Appetite Recovery Study (CAReS), where Artelo is moving its ART27.13 compound from Phase 1 to Phase 2a trials. This transition indicates significant progress and is anticipated to be a positive catalyst by the end of 2024, which is when full enrollment for the Phase 2a portion is expected. Bernardino sees this as a vital step towards proving the compound’s efficacy in aiding cancer patients with anorexia and weight loss.
Further supporting the Buy rating, Artelo has demonstrated promising preclinical results with its fatty acid binding protein-5 inhibitor, ART26.12, which shows potential for treating neuropathic pain. Although not yet factored into financial models, the submission of an Investigational New Drug (IND) application for ART26.12 by mid-2024 is viewed as an additional positive catalyst. Financially, Artelo’s lower than forecasted R&D expenses and a robust cash position to fund ongoing operations are seen as favorable indicators. Bernardino’s valuation also incorporates a risk-adjusted projection of future cash flows from ART27.13, using a balanced approach to account for potential risks such as clinical trial failures and regulatory hurdles.

In another report released yesterday, Ladenburg Thalmann & Co. also maintained a Buy rating on the stock with a $40.00 price target.

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Artelo Biosciences (ARTL) Company Description:

Artelo Biosciences, Inc. is a development stage company, which engages in discovering, licensing, developing and commercializing treatments that modulate the endocannabinoid system. The company was founded by James Manley on May 2, 2011 and is headquartered in San Diego, CA.