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Atossa: Strong Balance Sheet Will Support the Pipeline’s Advance, Says Analyst
Stock Analysis & Ideas

Atossa: Strong Balance Sheet Will Support the Pipeline’s Advance, Says Analyst

Biotechs inhabit their own universe within the stock market. Prone to huge upward or downward swings dependent on positive or negative news flow. They are also in a unique position when earnings season comes around as clinical-stage biopharmas usually do not generate any revenue.

When these companies report the quarter’s financials, investors are mostly interested in two issues. One, does the company have the necessary funds to continue its pipeline’s development? And two, any updates regarding said pipeline’s progress.

Following Atossa Therapeutics’ (ATOS) Q2 earnings, Maxim’s Jason McCarthy thinks the company is well positioned on both fronts.

Where updates are concerned, the company said it has been given the green light by the Australian regulators to advance AT-H201 into a clinical study. The drug is indicated for the treatment of patients with COVID-19 and “long haul” respiratory illness – i.e., patients who continue to display pulmonary disease post-infection.

McCarthy also highlights the progress made during the quarter for oral endoxifen, the company’s breast cancer treatment to be administered between diagnosis and surgery. Results from the phase 2 study showed the therapy reduced tumor cell activity. McCarthy also thinks the data suggests the drug could “yield therapeutic value more rapidly” than tamoxifen, presently the standard of care (SOC) treatment for both early and advanced estrogen-receptor positive (ER+) breast cancer.

Additionally, the Swedish regulators have cleared the way for a phase 2 study assessing oral endoxifen’s potential to effectively reduce mammographic breast density (MBD), the elevation of which may get in the way of successfully detecting breast cancer.

And as far as funding goes, Atossa seems well setup. With $142.4 million of cash in the coffers, the 5-star analyst thinks Atossa’s strong balance sheet “positions the company to continue driving pipeline development, and potentially expanding into additional therapeutic areas.”

So, good news for Atossa, but what does it all mean for investors? McCarthy reiterated a Buy rating for the shares, while his $7 price target suggests the stock will be changing hands for ~124% premium a year from now. (To watch McCarthy’s track record, click here)

Atossa appears to be going under the Street’s radar and currently there is only one other analyst assessing its prospects. The additional Buy provides the stock with a Moderate Buy consensus rating, while the $7.5 average target suggests shares will surge by 140% over the coming months. (See ATOS stock analysis on TipRanks)

To find good ideas for biotech 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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