On Monday, H.C. Wainwright adjusted its outlook on Pyxis Oncology Inc. (NASDAQ:PYXS), reducing the price target to $5.00 from the previous $7.00, but retained a Buy rating on the stock. Currently trading at $1.69 with a market cap of $100.5 million, Pyxis maintains a strong Buy consensus among analysts, with price targets ranging from $5.00 to $13.00. The firm's decision comes after Pyxis Oncology's recent strategic shift in its development pipeline announced last Thursday.
Pyxis Oncology decided to shift its focus toward PYX-201, its lead antibody-drug conjugate (ADC) targeting EDB-FN, based on preliminary Phase 1 data. According to InvestingPro analysis, the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 7.33, though it's currently burning through cash rapidly.
Although the anti-Siglec-15 antibody PYX-106 showed a promising pharmacokinetic/pharmacodynamic (PK/PD) profile and lacked anti-drug antibody detection, it has yet to reach the maximum tolerated dose.
The move to de-prioritize PYX-106 is seen as a strategic step, particularly in light of the discontinuation of NC318, another antibody targeting Siglec-15, due to its unproven efficacy. This decision is viewed as a way for Pyxis to better manage its operational expenses and to concentrate its resources on the development of PYX-201.
H.C. Wainwright reaffirmed its Buy rating on Pyxis Oncology, emphasizing the company's prudent choice to redirect its development efforts. The firm believes that this strategic adjustment will enable Pyxis to optimize its pipeline and potentially enhance its long-term growth prospects.
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In other recent news, Pyxis Oncology Inc. has seen significant developments in its cancer therapy pipeline.
The company has decided to prioritize the development of its drug PYX-201, following positive initial data from an ongoing Phase 1 trial. The drug has shown promising results in various solid tumors, particularly in head and neck squamous cell carcinoma. As a result of this focus, the company has suspended investment in another clinical program, PYX-106, to allocate resources more efficiently.
Analysts from RBC (TSX:RY) Capital, H.C. Wainwright, Stifel, and Jefferies have all given Pyxis Oncology a Buy or Outperform rating. RBC Capital has adjusted the price target on the company's shares to $8.00 from the previous $10.00, while maintaining an Outperform rating on the stock.
For the quarter ending June 2024, Pyxis Oncology reported no revenues but a net loss of $0.29 per share, less than the anticipated loss of $0.34 per share. H.C. Wainwright projects that Pyxis will generate revenues of $16 million and incur a net loss of $0.89 per share in fiscal year 2024.
Additional recent developments include the expansion of Pyxis Oncology's equity and incentive plan with the addition of 5.5 million shares, as approved by stockholders. The company has also sold royalty rights to Novartis AG (SIX:NOVN) for $8 million, which will be used to advance the development of PYX-201.
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