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180 Life Sciences: Positive Data From Dupuytren’s Disease Study Could Be a Big Catalyst, Says Analyst
Stock Analysis & Ideas

180 Life Sciences: Positive Data From Dupuytren’s Disease Study Could Be a Big Catalyst, Says Analyst

Over the past week, 180 Life Sciences (ATNF) stock has been on the rise, accumulating share gains of 40%.

So, what’s behind the uptick? Well, ATNF does have meme stock credentials having been a retailers’ favorite this year, and we’ve all witnessed the power of the crowd’s ability to send stocks with a heavy short interest to improbable heights, although at 4.5% of the float, the short interest is not very high right now.

That said, ATNF shares climbed higher perhaps in anticipation of a keynote address to be made by Oxford University Professor Jagdeep Nanchahal, who is also a co-founder of 180 Life Sciences.

Nanchahal’s presentation is called ‘Re-purposing anti-TNF for Dupuytren’s Disease’ and will be given at the 2021 International Dupuytren Symposium which takes place today (Wednesday, Dec 1, 3pm EST). At the virtual event, Nanchahal will also present the phase 2a clinical trial data to determine the optimal dose and top line data for the recently concluded phase 2b clinical study on efficacy for patients with early-stage Dupuytren’s disease (DD).

It is the Phase 2b readout which Maxim analyst Naz Rahman says “represents a significant data event for the company.”

“A P2a trial and prior studies using anti-TNF therapies support the potential for a positive readout finding a statistically significant lower level of α-SMA protein expression, a hallmark of mature myofibroblasts, vs. placebo,” the analyst said.

As Humira has already gained approval for 9 various inflammatory indications and rakes in more than $19 billion in annual sales, Rahman notes the “anti-TNF market is well-known,” and is why the analyst believes positive data from the Phase 2b study could be a “significant value driver” for the company.

“The data generated thus far provides us confidence in a potential positive P2b readout,” the analyst summed up.

Whether the event will trigger a case of “buy the rumor, sell the news” or will act to send shares higher, remains to be seen. In the meantime, Rahman sees plenty more upside; the analyst’s $11 price target suggests share will surge ~72% over the coming year. Unsurprisingly, Rahman has a Buy rating on ATNF stock. (To watch Rahman’s track record, click here)

Some names appear to elude Wall Street’s gaze and ATNF seems to be one of those right now; Rahman’s review is currently the only one on record. (See ATNF stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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