H.C. Wainwright slashed its price target for Eloxx Pharmaceuticals (NASDAQ:ELOX) to $3 from $10 and retained its “neutral” rating, saying the strength of the company’s ELX-02 program in cystic fibrosis is yet to be deciphered. The stock closed at $3.45 on March 5.
Analyst Andrew Fein writes that topline Phase 2 proof-of-concept data for ELX-02 are expected in the first half of 2020. The dose-escalation study is assessing safety, tolerability, pharmacokinetics and pharmacodynamics, and multiple dose levels of subcutaneously administered ELX-02 in patients with cystic fibrosis. with at least one G542X allele.
“In the meantime, we remain on the sidelines awaiting further perspective on the program’s future,” Mr. Fein said. “With single ascending dose and multiple ascending dose data in hand, and with the MAD study supportive of ELX-02 tolerability and pharmacokinetics without nephrotoxicity, we continue to point out skepticism among physicians that we have spoken with, regarding cystic fibrosis transmembrane conductance regulator rescue by ELX-02 in G542X/F508del human bronchial epithelial cells and specifically how to target the ribosome.”
On account of awaiting further clarity on the Phase 2 program in cystic fibrosis patients, he reduced the probability of success for the program to 20% from 25%.
