On Thursday, H.C. Wainwright increased its price target for Savara Inc. (NASDAQ:SVRA) shares to $10.00 from the previous $6.00 while maintaining a Buy rating on the stock. This adjustment follows discussions with key opinion leaders (KOLs) regarding the recent IMPALA-2 trial results for molgramostim, a treatment for autoimmune pulmonary alveolar proteinosis (aPAP).
The KOLs expressed a favorable view of the trial data, particularly highlighting the sustained efficacy of molgramostim at the 48-week mark. Although there is no established minimal clinically beneficial difference for the Diffusing Capacity of the Lungs for Carbon Monoxide (DLCO) in aPAP, the KOLs generally regarded a 10% improvement from baseline in DLCO as an ideal target, with one doctor suggesting a 15% improvement.
Patients in the IMPALA-2 trial who received molgramostim showed a 9.7% improvement in DLCO at week 24, in contrast to a 3.8% improvement seen in the placebo group. By week 48, the improvement in the treatment group increased to 11.6%, compared to 4.7% in the placebo group. Despite not reaching the 10% threshold, the improvements were statistically significant and were accompanied by positive changes in the secondary endpoints measured by the St. George's Respiratory Questionnaire (SGRQ).
The KOLs indicated that the 6% difference between the treatment and placebo groups at 24 weeks might be understated due to the inclusion of more severe cases in the data. One KOL expressed disappointment that the 10% threshold was not met but acknowledged that the significant SGRQ improvements supported the drug's clinical benefit.
The anticipation for further data on baseline DLCO values is high among KOLs, with expectations for more information to be revealed at the European Respiratory Society meeting scheduled for September 7-11. Importantly, the KOLs unanimously agreed that they would prescribe molgramostim to most of their patients if it received approval, citing no apparent barriers to its approval and previous successful off-label use of a similar drug, sargramostim, to treat aPAP.
In other recent news, biopharmaceutical company Savara Inc. has been the subject of several significant developments. JMP Securities maintained a Market Outperform rating on Savara and raised the price target from $8.00 to $10.00, based on the anticipated approval of the company's lead drug candidate, molgramostim. Piper Sandler also maintained an Overweight rating and a $16.00 price target on Savara, expressing confidence in the upcoming IMPALA-2 data results.
Furthermore, Oppenheimer raised its price target on Savara's shares from $9.50 to $11.00, following the American Thoracic Society International Conference. This adjustment is attributed to an increased awareness for autoimmune pulmonary alveolar proteinosis (aPAP) and the potential of molgramostim, Savara's therapeutic candidate.
InvestingPro Insights
Amidst the optimism surrounding Savara Inc.'s (NASDAQ:SVRA) IMPALA-2 trial results, InvestingPro data provides a broader context for investors considering the stock's potential. With a market capitalization of $530.65 million USD and a P/E ratio that reflects its growth stage at -10.25, Savara's financial health is noteworthy. The company's liquid assets surpass short-term obligations, indicating a strong liquidity position. However, the company's gross profit margins remain weak, with a gross profit of -$52.33 million USD in the last twelve months as of Q1 2024, and it is not expected to be profitable this year, as reflected in the adjusted P/E ratio of -8.23.
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