In a report released today, Douglas Tsao from H.C. Wainwright reiterated a Buy rating on Rezolute (RZLT – Research Report), with a price target of $14.00.
Douglas Tsao has given his Buy rating due to a combination of factors including the recent Breakthrough Therapy Designation (BTD) granted to Rezolute’s drug, ersodetug, for treating hypoglycemia caused by tumor hyperinsulinism. This designation highlights the significant unmet medical need and the promising early evidence of efficacy for this condition, which is associated with high morbidity and mortality rates. The company’s plans to conduct a comprehensive registrational study further bolster confidence in the potential of ersodetug to address these needs.
Additionally, the enthusiasm surrounding the drug is supported by the ongoing sunRIZE program, which has received positive interim analysis results, validating the study’s design and assumptions. The potential market for ersodetug is expanded by its applicability to both congenital and tumor-induced hyperinsulinism, with a significant number of addressable patients in the U.S. The recent publication in the New England Journal of Medicine has also sparked interest and demand for the drug, further supporting the Buy rating.
In another report released yesterday, Wedbush also maintained a Buy rating on the stock with a $12.00 price target.
Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RZLT in relation to earlier this year.