Is Aptinyx Stock a Buy Right Now? This Is What You Need to Know

Stock Market

Aptinyx (APTX) had a roller-coaster week last week, rising on positive clinical trial results, and falling sharply after announcing an equity offering that will dilute current investors but help shore up the company’s balance sheet.

In the Phase 2 study assessing NYX-783 in 153 patients with post-traumatic stress disorder (PTSD), the NMDA receptor modulator met the primary endpoint of a statistically meaningful improvement in the CAPS-5 domain Arousal and Reactivity subscore, when compared to placebo, in both 10mg and 50mg doses.

The CAPS-5 scale measures symptoms of PTSD, gauging reactions such as self-destructive behavior, excessive startle response and irritability. With over 8.5 million American affected by PTSD and no drugs yet available to treat the root cause of the disorder, Aptinyx hopes NYX-783 can provide a solution.

Overall, NYX-783 appeared to be well-tolerated and no safety concerns were raised. A pivotal study is expected to go ahead in 2021.

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Following the positive results, Cowen analyst Ritu Baral reiterated an Outperform (i.e. Buy) rating on APTX shares, without suggesting a price target. (To watch Baral’s track record, click here)

The 5-star analyst said, “We are encouraged by the early efficacy data seen in this topline data release. While we note the relatively high p values for some of the data points (i.e. CAPS-5 Total Score), we are encouraged by the strong responder analysis despite a PBO effect. Strength of the overall ITT analysis as well consistency of other key secondary measures (tba, likely at a medical meeting) will also be important. We view ‘783 as largely off-the-radar for most investors, partly due to this being a first-in-patient signal-finding study. Nonetheless, ‘783 advancing to a pivotal study increases the value of APTX’s pipeline, though we eagerly await the final trial design.”

However, clinical trials are expensive, and they are almost always preceded by a public offering. Aptinyx is no different. Last Thursday, the company has priced 14 million shares at $3 apiece, a 23% below what its shares cost prior to the offering announcement.

Overall, the analyst consensus rates Aptinyx a Strong Buy, based on 3 Buys and 1 Hold. Going by the $10 average price target, the forecast is for strong upside of 220% over the following months. (See Aptinyx stock analysis on TipRanks)

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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