Strong Catalysts Confirm Bullish Thesis About These Two Stocks

All investors are chasing profits, but when trying to find the right stocks to increase the value of their portfolio, they are constantly inundated with huge amounts of data.

Thus, separating the wheat from the chaff is a difficult process, but there are tools to help sort it all out. TipRanks’ Smart Evaluation It is one. The tool collects all the information needed for any particular stock and sorts it into 8 different categories, each of which is known to affect future results. By combining these factors, they are then distilled into a single score – ranging from 1 to 10.

Clearly, the Perfect 10 is a strong indicator that stocks are likely to be winners going forward. With that in mind, we’ve dug up two Perfect 10 names. What’s more, both options are not only seen as active buys by analyst consensus, but also have potential catalysts. Here are the details.

Prothena Corporation (PRTA)

First, Prothena is a late clinical stage biotechnology company working in the field of protein dysregulation, i.e. misfolded proteins, using this approach to develop new therapeutics to treat rare and devastating neurodegenerative diseases, including conditions such as Parkinson’s disease and Alzheimer’s disease. Prothena’s research approach directly targets misfolded proteins to change the course of the disease at a basic level.

The biggest recent news for Prothena was an 87% price jump in a single day last September. Ironically, the company itself did not release any news at the time; rather, as an exploratory biopharmaceutical company working on treatments for Alzheimer’s, the company received a huge boost when its competitor, Biogen, published positive data on Alzheimer’s clinical trials. Several Alzheimer’s clinical drug companies saw a profit in the news.

Since then, Prothena has had some good news to report on its own. In late January, the company published positive data on PRX005, a new anti-MTBR Tau antibody drug candidate that is being investigated for the treatment of Alzheimer’s disease. The data showed that single doses in three different dose cohorts were safe and well tolerated, which was consistent with the purpose of the study. Phase 1 of this dose escalation study is ongoing and the company expects to release data by the end of this year.

In an earlier notice back in November, Prothena announced that it had secured a major milestone payment related to its Phase 2 study of PRX004, a drug candidate developed in partnership with Novo Nordisk for the treatment of ATTR cardiomyopathy. The payment was $40 million and Prothena is eligible to receive payments of up to $1.2 billion related to this experimental drug program.

But leading the pipeline is potentially the best-in-class treatment for AL amyloidosis, birtamimab. This candidate is the subject of a Phase 3 study, and supporting data from the AFFIRM-AL study is expected to be published sometime next year.

On the financial side, Prothena had $497 million in cash at the end of the third quarter. With a quarterly expense (net cash used) of $31.3 million, this gives the company enough cash to run for three years.

As for the Smart Score, Prothena shows that stocks don’t need positive scores on all 8 factors to get into the top 10. insider stock purchases in the last three months. Hedge funds are also buying, and their purchases increased by more than 268,000 shares last quarter.

The stock caught the attention of Piper Sandler analyst Yasmin Rahimi, a five-star biotech expert. Rahimi talks about the company and its future: “At its core, Prothena is fueled by years of research into neurological dysfunction due to misfolded proteins to use its scientific expertise to develop a vast range of small molecules, monoclonal antibodies and vaccines that capture seven traits such as amyloidosis AL and ATTR, Parkinson’s disease, Alzheimer’s disease and general neurodegeneration … We would buy PRTA before the main catalysts of stock movement, including: Ph1 SAD / MAD data from PRX012 (anti-Aβ) and PRX005 (anti-Tau) in 2023 , and prazinezumab Ph2b data in Parkinson’s disease, birtamimab Ph3 AFFIRM data, and PRX004 Ph2 data in 2024.”

With so many catalysts ahead, it’s no surprise that Rahimi rates this stock as overvalued (buy). Its target price is set at $94, which implies a 63% increase within one year. (To view Rahimi’s track record, click here)

Of the 7 recent analyst reviews featured here, 6 are talking about buying against just one hold for a strong buy analyst consensus rating. The stock is currently trading at $57.75, with an average target price of $86.43 suggesting a 50% uptrend ahead of us. (See Prothena share analysis on TipRanks)

Dine Therapeutics, Inc. (DIN)

The second action we’re looking at is Dyne Therapeutics, an early-stage clinical research company that is working to treat genetically determined diseases. These can be devastating conditions, and effective new therapeutics can change lives for the better. Using its proprietary FORCE platform, Dyne is investigating treatments for various forms of muscular dystrophy, including Duchenne and myotonic dystrophy, and is conducting two Phase 1/2 clinical trials. Several additional tracks remain at the level of discovery and preclinical studies.

Dyne is in the pre-profit phase and the company’s main catalyst is clinical trials. The first, the drug candidate DYNE-101 study for the treatment of myotonic dystrophy, is the ACHIEVE phase 1/2 trial, a multiple dose escalation study expected to enroll up to 64 patients. Drug safety, tolerability and splicing data are expected to be published in 2H23.

Also in Phase 1/2 is the DELIVER study, a safety, tolerability, and dystrophin study of DYNE-251 for the treatment of Duchenne muscular dystrophy. Up to 46 male patients will be enrolled in this study, both outpatient and non-ambulatory. Data on safety, tolerability and dystrophin level end points, as in the above study, are expected in 2H23.

In the last reporting quarter, Q3. 2022, Dyne spent $34.7 million on research and development and another $7.6 million in general administrative expenses. The company reported a cash balance of $248.1 million at the end of Q3 and expects to be able to fund operations through 2024.

When we look at Smart Score here, we find a pattern similar to Prothena: not every metric was positive, but the positives outweighed the negatives. Among the positives were financial blogger sentiment, which was 100% positive, and insider trading, which was significant. Company insiders bought DYN for $20 million in the last three months.

5-Star Guggenheim Analyst Debjit Chattopadhyay took a close look at these stocks and charted a path to future success, writing: “The FORCE platform is at the heart of the Dyne search engine, which has built compelling clinical assets to date through the integration of TfR1-mediated drugs. delivery. Our patented analysis… leads us to believe: (1) ACHIEVE (2H23 data) can show a higher splicing index than competitors at relatively low doses; and (2) preliminary progressive evaluations point to DELIVER (indicated in 2H23) generating clinically relevant dystrophin at commercially viable doses. If these clinical updates are successfully validated, DYNE will be well positioned to capture a significant fraction of the multi-billion dollar TAM for DM1, DMD and FSHD.”

Tracking this position, Chattopadhyay is giving DYN stock a Buy recommendation with a target price of $33, suggesting a solid upside potential of 136% for the year. (To view Chattopadhyay’s track record, click here)

There are only 4 recent analyst reviews of Dyne, but they are all positive, in line with the Strong Buy consensus rating. With a share price of $14 and an average price target of $25.5, DYN boasts 84% ​​upside potential next year. (See DYN stock analysis on TipRanks)

For good stock trading ideas at an attractive price, visit TipRanks Best Stocks to Buy, a tool that brings together all of TipRanks stock analytics.

Denial of responsibility: The opinions expressed in this article are solely those of selected analysts. The content is for informational purposes only. It is very important to conduct your own analysis before making any investment.

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