Gain Therapeutics, Inc. (GANX) has reported a wider-than-feared loss for the third quarter of 2021. Despite the loss, shares of the biotechnology company increased 10.3% to close at $8.25 on Friday.
Results in Detail
The company reported a loss of $0.39 per share against the Street’s loss estimate of $0.34 per share. It had reported a loss of $0.25 per share in the same quarter last year.
Total revenues generated during the quarter stood at $27 thousand, as compared to revenues of $7 thousand in the prior-year quarter. Development services on the first target development program under the Zentalis Pharmaceuticals collaboration agreement drove the revenues.
During the quarter, both general and administrative expenses and research and development expenses increased significantly on a year-over-year basis and stood at $2.2 million and $2.5 million, respectively. (See Gain Therapeutics stock charts on TipRanks)
As of September 30, 2021, Gain Therapeutics’ cash position stood at $40.98 million, as compared to $7.49 million as of December 31, 2020.
Recently, the company’s study results demonstrated statistically significant effects on all tested phenotypes, which represented a key breakthrough in the potential to treat neurodegenerative disorders characterized by misfolded proteins, including Parkinson’s Disease, Alzheimer’s, Gaucher’s Disease and Lewy Body Dementia.
The study was designed to evaluate two lead Structurally Targeted Allosteric Regulators (STARs) compounds – GT-02287 and GT-02329 – for the treatment of Gaucher and GBA1 Parkinson’s Disease.
Looking forward, the CEO of Gain Therapeutics, Eric Richman, said, “Building on a robust portfolio of data generated to date, the Company will be hosting several presentations to both the investor and medical community that showcase Gains’ supercomputer-powered SEE-Tx discovery platform to identify lead STAR compounds for potential treatment of rare genetic and neurodegenerative diseases.”
Wall Street’s Take
Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average Gain Therapeutics price target of $27 implies 227.27% upside potential from current levels. Shares have lost 26.3% over the past year.
Gain Therapeutics scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. (See Top Smart Score Stocks on TipRanks)