Buy Rating Maintained for Annovis Bio Ahead of Key Parkinson’s Drug Trial Results

Canaccord Genuity analyst Sumant Kulkarni has maintained their bullish stance on ANVS stock, giving a Buy rating on May 13.

Sumant Kulkarni has given his Buy rating due to a combination of factors, including the anticipation of key Phase 3 trial results for Annovis Bio’s drug, buntanetap, in treating early Parkinson’s disease (PD). Kulkarni recognizes the significant challenges in drug development for PD, which he suggests are even greater than for Alzheimer’s disease (AD). However, he believes that the forthcoming data in June could be crucial for both the company’s stock and its future trajectory. Annovis Bio has also indicated that they have the financial resources to continue operations into the fourth quarter of 2024.

Kulkarni maintains his Buy rating without major changes to his financial model, as he awaits the pivotal PD data. He has updated the model to account for a recent modest capital raise by Annovis Bio, which extends the company’s cash runway into 2026. The probabilities of approval for buntanetap in AD and PD have been modeled at 15% and 40%, respectively, with potential market launches projected for 2029 and 2028. Kulkarni’s analysis includes a Discounted Cash Flow (DCF) approach, with the price target for Annovis Bio’s stock remaining at $26, showing confidence in the stock’s potential upside for risk-tolerant investors.

In another report released on May 13, H.C. Wainwright also reiterated a Buy rating on the stock with a $23.00 price target.

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Annovis Bio (ANVS) Company Description:

Annovis Bio Inc is a United States based clinical stage pharmaceutical company focused on developing and commercializing drugs for the treatment of Parkinson’s and Alzheimer’s diseases and other neuro degenerative diseases. The pipeline products of the company include ANVS-401, ANVS-405 and ANVS-301.