Forte Posts Lower-Than-Feared Quarterly Loss; Shares Drop 9.5%
Forte Biosciences reported a smaller-than-expected loss in the fourth quarter. Shares of the clinical-stage biopharmaceutical company rose almost 2% in Wednesday’s extended trading session after closing 9.5% lower on the day.
Forte (FBRX) incurred a loss of $0.37 per share in 4Q, compared to the $0.57 loss per share estimated by analysts. Results compared favorably to the prior-year quarter’s loss of $0.74 per share.
The company’s research and development expenses more than doubled on a year-over-year basis to $3 million in the quarter, while total general and administrative expenses more than tripled to $1.5 million. (See Forte Biosciences stock analysis on TipRanks)
Forte CEO Paul Wagner said, “In September, we initiated a randomized trial of FB-401 in atopic dermatitis patients, including adults and children 2 years of age and older. We are very pleased to announce that patient enrollment is now complete.”
“Another notable milestone was the granting of Fast Track designation to FB-401 by the FDA in recognition of the unmet need and seriousness of the disease,” Wagner added.
Ladenburg Thalmann analyst Michael Higgins increased the stock’s price target to $90 (260% upside potential) from $70 and maintained a Buy rating “given the increased confidence in FB-401’s Phase 2.”
The consensus rating among analysts is a Strong Buy based on 3 unanimous Buys. The average analyst price target stands at $97.50 and implies upside potential of almost 290% to current levels over the next 12 months. Shares have gained 11.2% over the past year.
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