Prometheus Biosciences (NASDAQ:RXDX) stock soared nearly 225% in the past two days and hit $117.73 for the first time since going public in March 2021. Positive Phase-2 trial results for its PRA023 drug, designed to treat ulcerative colitis and Crohn’s disease, supported the rally.
As the next step, Prometheus CEO Mark McKenna said, “We look forward to discussions with regulatory agencies as we prepare to advance into Phase 3 studies in Ulcerative Colitis and Crohn’s Disease.”
Furthermore, the company recently announced the pricing of a $500 million public offering. It plans to use the net proceeds to fund the development of PRA023, PRA052, and other research and development programs.
The clinical-stage biotech company specializes in immunotherapies with a focus on inflammatory bowel disease. Last month, Prometheus delivered results for the third quarter of 2022. The company reported a net loss of $0.90 per share, which was below the consensus estimate of a loss of $0.88.
Is RXDX a Good Buy?
Wall Street is highly bullish on Prometheus. The stock has a Strong Buy consensus rating based on eight unanimous Buy recommendations. The RXDX average price target of $140 implies 19.4% upside potential.
