On Thursday, Canaccord Genuity (TSX:CF) reaffirmed its positive stance on Aptose Biosciences (NASDAQ:APTO), maintaining a Buy rating and a price target of $15.00. Aptose recently disclosed its fourth-quarter earnings for 2023 and provided updates on its development plans for tuspetinib as a treatment in front-line acute myeloid leukemia (AML).
The company is progressing with a triple-drug regimen including tuspetinib for AML patients who are not suitable for induction chemotherapy. This decision comes after observing a favorable safety profile and a 36% complete response rate (CR/CRh) when tuspetinib was used as a monotherapy in AML patients who had not previously been treated with venetoclax.
Furthermore, Aptose is advancing the third-generation (G3) formulation of luxeptinib. The G3 formulation has shown promise, achieving 2-3uM steady state plasma levels and approximately ten times higher absorption compared to the original first-generation (G1) formulation. The company is exploring various strategies, including potential collaborations, to develop luxeptinib either as a standalone treatment or in combination with venetoclax for relapsed or refractory AML patients.
The investment firm's continued endorsement and price target are based on several expected milestones in 2024. These include additional data on the tuspetinib/venetoclax doublet in relapsed/refractory AML to be presented at the European Hematology Association (EHA) meeting in 2024, and early data on complete response, minimal residual disease, and safety for the tuspetinib-based triplet therapy in first-line AML at the American Society of Hematology (ASH) meeting in 2024.
InvestingPro Insights
With Canaccord Genuity maintaining a bullish outlook on Aptose Biosciences (NASDAQ:APTO), investors might be intrigued by the company's financial health and market performance. According to InvestingPro data, Aptose has a market capitalization of $25.78 million. The company's financials reflect a challenging environment, with an adjusted P/E ratio for the last twelve months as of Q4 2023 standing at -0.49, indicating that the company is not currently generating earnings to support its share price. Additionally, the firm has reported an operating income of -$52.36 million over the same period.
InvestingPro Tips reveal a nuanced picture. While Aptose holds more cash than debt, which is a positive sign for liquidity, the company is quickly burning through its cash reserves. This is further compounded by weak gross profit margins and the fact that short-term obligations exceed liquid assets. Analysts are not optimistic about the company's profitability in the near term, and the stock has experienced a significant downturn over the last year, with a 1-year price total return of -84.16%. These metrics suggest that the company is facing headwinds, despite the potential of its drug candidates.
For investors looking for a deeper dive into Aptose's prospects, there are additional InvestingPro Tips available that could help in making a more informed decision. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to these insights. With the next earnings date on May 8, 2024, staying informed with the latest data and analytics could be crucial for those invested in Aptose's journey.
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