H.C. Wainwright lowered its price target for Aileron Therapeutics (NASDAQ:ALRN) to $3 from $6, citing the removal of lead drug candidate, ALRN-6924, in combination with Ibrance in murine double minute 2 (MDM2) gene-amplified solid tumors from its model. The stock closed at 37 cents on March 30.
Analyst Edward White writes that the company has determined it makes better strategic sense to suspend further development of ALRN-6924 in combination with Ibrance and is now focused solely on ALRN-6924 as a myelopreservation agent.
As of March 15, seven patients out of 34 remain on treatment in the Phase 2a trial of ALRN-6924 in combination with Ibrance for the treatment of patients with MDM2-amplified advanced solid tumors. A progression free survival analysis and the trial’s final results are expected in the second half of 2020.
“Although the development of the combination treatment has discontinued, we believe there could be a path forward for the combination,” Mr. White said. “Overall, we view the pivot to solely focus on ALRN-6924 as a myelopreservation agent as a smart move for the company.”
Aileron’s ALRN-6924 is being evaluated in a Phase 1b/2 trial as a myelopreservation agent in patients with p53-mutant small cell lung cancers treated with topotecan. Mr. White said enrollment in the trial has slowed during the COVID-19 pandemic. “While data from the study were initially expected in the second quarter of 2020, the company now believes data will be presented in the fourth quarter this year,” he added.
