Maxim Group reduced its price target for Ayala Pharmaceuticals (NASDAQ:AYLA) to $12 from $22, but maintained a “buy” rating, after the company discontinued the Phase 2 TENANCITY trial evaluating AL101 in triple negative breast cancer (TNBC).
The company said it intends to focus its resources on its most advanced programs: RINGSIDE and ACCURACY. The Phase 2/3 RINGSIDE trial in desmoid tumors is the most advanced, followed by a Phase 2 ACCURACY study in adenoid cystic carcinoma.
“We expect updates from RINGSIDE and ACCURACY trials mid-2022,” writes analyst Naureen Quibria, Ph.D.
Ayala, which ended the fourth quarter with $37.3-million in cash on the balance sheet, also is involved in a collaboration with Novartis in multiple myeloma and a Phase 1 investigator-sponsored study in adenoid cystic carcinoma.
Dr. Quibria cited a valuation contraction across the biotech sector and post-fourth quarter adjustments, including removal of the TNBC program, for her price target cut. “We believe the sharp pullback in Ayala shares (down 54% year-to-date) is overdone, creating an attractive entry point,” she added.
