Yesterday, Regulus Therapeutics Inc (NASDAQ:RGLS) disclosed unpleasant updates regarding the company’s pipeline. The drug maker announced three program discontinuations, which include drugs: RG-101, a miR-122 inhibitor for the treatment of hepatitis C, RG-125, a miR-103/107 inhibitor for the treatment of non-alcoholic steatohepatitis, and RGLS5040, a miR-27 inhibitor for the treatment for cholestatic disorders.
In the wake of the clinical updates, Chardan analyst Madhu Kumar slashed his price target to $5.00 (from $2.50), while reiterating a Buy rating on the stock.
To the company’s credit, the analyst points out that the company’s lead drug RG-012, a miR-21 inhibitor for the treatment of Alport syndrome, is still on the run and has a “favorable risk-benefit profile.” Kumar reminds “The phase II HERA trial is expected to provide renal biopsy data by year end-2017 and interim efficacy data by mid-2018,” and highlights the drug maker’s future is strongly linked to RG-012 performance.
The analyst concludes, “While we still have some degree of caution around RG-012, considering the market’s very modest expectations for the drug, positive data in the renal biopsy study in year-end 2017 or in the interim analysis of HERA in mid-2018 could be significant drivers of upside for RGLS shares.”
According to TipRanks, a financial engine that measures and ranks analysts’ and bloggers’ performance, Madhu Kumar is ranked #1689 out of #4567 analysts. Kumar has a 55% success rate and generates an annual yield of 4.8%. However, when recommending RGLS, the analyst earns a -73.8% average profit on the stock.
TipRanks analytics show RGLS as a Buy. Based on 4 analysts offering recommendations for the stock, 2 issue a Buy and 2 maintain a Hold ratings. The 12-month average price target stands at $4.75, making a nearly 320% upside from where the stock is currently trading.