H.C. Wainwright cuts Compass Therapeutics stock price target on FDA trial recommendation

H.C. Wainwright has reduced its price target on Anixa Biosciences (NASDAQ:ANIX) stock to $6 from $7. Despite this adjustment, the firm has kept a Buy rating on the stock. The new target, more than double the current price of $2.79, reflects the company's recent achievement of securing a patent related to its breast cancer vaccine technology.

This patent, issued by IP Australia, protects Anixa's innovation in Australia, extending its exclusivity through 2040. The patent, which complements Anixa's existing portfolio in the U.S. and other international markets, bolsters the company's intellectual property strength. Anixa's Phase 1 trial of the breast cancer vaccine met all major primary endpoints, showed the vaccine to be safe and well-tolerated, and generated a protocol-defined immune response in over 74% of participants.

H.C. Wainwright projects that the company could advance the vaccine into a Phase 2 trial in the U.S. in 2027. The estimated market value of Anixa has risen to $254 million, significantly higher than the current market cap of $97 million. The company's cash holdings exceed its debt, and it maintains a strong current ratio of 8.54.

However, analysts do not expect profitability this year. The stock price target adjustment is based on projected shares outstanding increasing to 40.6 million in 12 months, resulting in an approximate price objective of $6. Anixa Biosciences has also made progress in other areas, including dosing the first patient in a Phase 1 trial for a CAR-T therapy targeting recurrent ovarian cancer and securing a South Korean patent for its breast cancer vaccine technology.

Despite these advancements, the company's stock experienced a decline following the presentation of Phase 1 trial data.