Oppenheimer maintained a positive outlook on Jasper Therapeutics (NASDAQ: JSPR), reiterating an Outperform rating with a firm price target of $80.00.
The company’s position comes after evaluating long-term results from a phase 2 study of parzolfolimab for the treatment of chronic spontaneous urticaria (CSU), which was presented at the European Academy of Dermatology and Venereology (EADV) congress.
According to the company, the effectiveness of parzolfolimab appeared impressive, as it showed an enhanced response from week 12 to week 52.
This ongoing efficacy has sparked discussions about the safety profile, recently causing volatility in the stock prices of both Celldex (NASDAQ:) Therapeutics (the company developing barzolvolimab) and Jasper Therapeutics.
The Oppenheimer analyst suggested that the strong performance of parzolfolimab could validate the anti-cKit mechanism of action (MoA), which is also shared by Jasper’s drug candidate, briquilimab.
The company believes briquilimab can differentiate itself with a high potential adverse event (AE) profile, which is attributable to its unique pharmacokinetic (PK) profile and dosing regimen.
After meeting with Jasper Therapeutics management, Oppenheimer reiterated his optimism about the company’s prospects.
In other recent news, Jasper Therapeutics has made big strides in its clinical trials. The biotechnology company has received approval from Health Canada to begin a phase 1b/2a clinical trial of briquilimab, a potential treatment for asthma.
The trial, which is scheduled to begin enrolling patients soon, will test a single 180 mg dose of briclimab in 30 asthma patients across multiple sites in Canada and the European Union, with initial data expected in the latter half of 2025.
In addition, the US Patent and Trademark Office has registered a trademark for Jasper’s proprietary Jasper c-Kit Mouse™ model, which was instrumental in the clinical development of briquilimab. Several analyst firms, including JMP Securities, HC Wainwright and RBC Capital, have given positive ratings to Jasper Therapeutics, highlighting briquilimab’s potential.
The company also announced that the SPOTLIGHT study of its chronic induced urticaria and asthma trial is scheduled for Q4 2024. Additionally, Jasper is preparing for a proof-of-concept Asthma Challenge study, also scheduled for the same quarter.
InvestingPro Insights
Recent InvestingPro data provides additional context for Oppenheimer’s bullish outlook on Jasper Therapeutics (NASDAQ:JSPR). Despite the company’s current unprofitability, with negative EBITDA of -$67.01 Million over the last twelve months, JSPR has shown impressive stock performance. The company’s year-to-date TSR is 138.66%, with a one-year return of 169.0%.
This strong stock performance is consistent with Oppenheimer’s outperform rating and $80 price target. However, it is worth noting that the stock has recently seen a setback, returning -12.56% over the past week. This volatility is reflected in InvestingPro’s advice, which notes that “stock price movements are highly volatile.”
Another related tip from InvestingPro states that “3 analysts have revised their earnings upwards for the coming period.” This could be related to the positive long-term results from the phase 2 study of briquilimab and potential effects on Jasper’s own candidate, briquilimab.
Investors should be aware that although the market appears optimistic about Jasper’s prospects, the company is “burning through cash quickly,” according to another piece of advice from InvestingPro. This is a common trait among development-stage biotech companies and underscores the importance of the results of the upcoming BEACON study.
For a more comprehensive analysis, InvestingPro offers 8 additional tips for JSPR, providing a deeper understanding of the company’s financial position and market position.
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