Regulus price target raised to $3 from $2 at Wells Fargo

Wells Fargo raised the firm’s price target on Regulus to $3 from $2 and keeps an Equal Weight rating on the shares. The firm notes that Regulus announced topline data from Cohort 2 of the Phase 1b MAD study evaluating RGLS8429 in ADPKD patients. Following the data release, the company announced an oversubscribed $100M PIPE at a purchase price of $1.60/share. The raise extends cash runway into the first half of 2026 with proceeds going towards increasing the size of Cohort 4 to further evaluate the impact of RGLS8429 on cystic volume. Wells thinks Cohort 2 data are interesting, but given the small sample size and potential variability, it looks to mid-year data from Cohort 3 for confirmation of effects on PD biomarkers and correlation b/t PC1/PC2 changes and total kidney volume change.