Dogwood Therapeutics, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Jason McCarthy from Maxim Group maintained a Buy rating on the stock and has a $30.00 price target.
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Jason McCarthy has given his Buy rating due to a combination of factors that highlight Dogwood Therapeutics’ strategic advancements and potential for growth. The company recently acquired an exclusive global license for SP16, a peptide-based therapeutic aimed at treating cancer-related pain. This acquisition is seen as a significant step forward, as SP16 has demonstrated promising preclinical results, including analgesic effects and potential synergy with Dogwood’s existing NaV1.7 channel blocker, Halneuron, which is in Phase 2b development for chemotherapy-induced neuropathic pain.
Moreover, the involvement of the National Cancer Institute (NCI) in funding a planned Phase 1b study for SP16 adds credibility and reduces risk, highlighting the unmet need in this therapeutic area. The deal terms are favorable, with no royalties or development milestones, and the structure around the preferred stock component could significantly enhance Dogwood’s market capitalization. This strategic move not only diversifies Dogwood’s pipeline but also increases its attractiveness to potential partners, positioning the company for future success.
According to TipRanks, McCarthy is an analyst with an average return of -17.7% and a 31.66% success rate. McCarthy covers the Healthcare sector, focusing on stocks such as OS Therapies Incorporated, SCYNEXIS, and Medicus Pharma Ltd.
In another report released yesterday, H.C. Wainwright also maintained a Buy rating on the stock with a $12.00 price target.