Shares in Aldeyra Therapeutics Inc (ALDX) exploded 30% in after-hours trading on Tuesday, following news that the company will host a conference call and webcast at 8AM ET today to provide a COVID-19 development update.The clinical-stage biotech is focused on the development of novel therapies with the potential to improve the lives of patients with immune-mediated diseases.
In March the company announced that it will begin screening its novel reactive aldehyde species (RASP) inhibitors, including ADX-629 and reproxalap, for potential anti-inflammatory and antiviral activity in the treatment of COVID-19 infection.
“We are committing scientific expertise and development resources associated with our RASP platform to help reduce the impact of the COVID-19 global healthcare crisis,” Todd Brady, CEO of Aldeyra stated at the time.
“Given the strong association between RASP and acute respiratory distress syndrome (ARDS), as well as the structural similarity of reproxalap and ADX-629 to chloroquines, we are researching the potential of our novel RASP inhibitors to mitigate the clinical severity of COVID-19 infection.”
Aldeyra subsequently announced in April that it was requesting a pre-investigational new drug meeting with the Infectious Disease Division of the U.S. Food and Drug Administration (FDA), and that it had filed ADX-629 under the FDA’s Coronavirus Treatment Acceleration Program (CTAP).
Two analysts have published recent buy ratings on the stock, giving ALDX a Moderate Buy consensus. (See ALDX stock analysis on TipRanks).
“We remain somewhat skeptical about the opportunity in COVID-19 respiratory compromise due to the sheer number of therapies that have been put forward to abate the current crisis… but continue to expect Aldeyra will deploy its resources prudently among these new areas of study” JonesTrading analyst Matthew Cross wrote recently, adding: “We believe the dry eye program should remain top of mind for investors.”
Meanwhile Oppenheimer’s Justin Kim has just initiated Aldeyra with a buy rating and $12 price target (212% upside potential). “As Aldeyra gains greater visibility for its late-stage Phase 3 programs in allergic conjunctivitis (AC) and dry eye disease (DED), we believe the company could be positioned for a re-rating” he told investors on May 11.
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