THREE " PERFECT TEN STOCKS " UNDER $10 WITH BIG UPSIDE Aptose Biosciences (APTO)
Developing targeted agents, Aptose Biosciences wants to address the unmet clinical need in chronic lymphocytic leukemia (CLL), non-Hodgkin’s lymphoma (NHL), acute myeloid leukemia (AML), myelodysplastic syndrome (MDS) and other hematologic malignancies. Thanks to its promising pipeline and $6.92 share price, some analysts believe that its share price reflects an attractive entry point
Covering the stock for H.C. Wainwright, 5-star analyst Joseph Pantginis cites its CG-806 asset as a key component of his bullish thesis.
On June 12, APTO announced new positive clinical results from its Phase 1 a/b trial evaluating the therapy in patients with relapsed or refractory CLL, small lymphocytic lymphoma (SLL) or NHL. It should be noted that this trial represents the first in human, open-label, single arm, multicenter dose-escalation clinical study testing the safety, tolerability and initial activity of CG-806.
Looking more closely at the results, the candidate was well tolerated, with no serious adverse events witnessed. It also produced lymphocytosis in two CLL patients and delivered complete inhibition of phospho-BTK and multiple oncogenic survival pathways in every patient that received at least 300mg BID. It also completely inhibited phospho-FLT3. For the same dose, steady state PK levels, which are considered to be effective in murine tumor models, were achieved.
Weighing in on this data, Pantginis commented, “We believe the data around CG-806 continue to demonstrate encouraging safety and pharmacologic activity with robust inhibition of several oncogenic driver kinases including 100% of phospho BTK from PBMCs... While it is not known yet how this could translate into better clinical activity, it is encouraging to see such significant multi on-target abrogation phenotype.”
According to Pantginis, the implications go even further. “We believe these data continue to validate the development of CG-806 and support the further dose escalation of the drug... we believe initial response data around CG-806 could be presented at ASH 2020 in multiple indications possibly including r/rAML,” he stated.
As APTO has also already submitted an IND to initiate a parallel Phase 1 a/b clinical study of CG-806 in patients with relapsed or refractory FLT3-mutant or FLT3-wildtype AML, the deal is sealed for Pantginis.
In line with his optimistic take, he rates APTO a Buy rating along with a $9 price target. Should the target be met, a twelve-month gain of 30% could be in store. (To watch Pantginis’ track record, click here)
Looking at the consensus breakdown, other analysts are on the same page. With 7 Buys and no Holds or Sells, the word on the Street is that APTO is a Strong Buy. The $11.29 average price target puts the upside potential at 63%. (See APTO stock-price forecast on TipRanks)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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