HCW cuts Aileron Therapeutics PT to $1 from $2

Aileron Therapeutics Logo

H.C. Wainwright reduced its price target for Aileron Therapeutics (NASDAQ:ALRN) to $1 from $2, but maintained its “buy” rating, after the company reported “underwhelming” interim data from a Phase 1 study in non-small cell lung cancer. The stock closed at 30 cents on June 29.

The company is ending the lung cancer study and is putting its focus towards breast cancer, writes analyst Andrew Fein.

On a positive note, he said patients treated with ALRN-6924 were able to stay on chemotherapy longer, completing 93% of the first four cycles of carboplatin and pemetrexed administered, compared with 78% on placebo.

Mr. Fein said Aileron plans to take steps to redesign the Phase 1b breast cancer trial, including revising the primary endpoint to duration of severe neutropenia in cycle 1 and changing the chemotherapy regimen to a simultaneous administration of doxorubicin plus cyclophosphamide and docetaxel.

In addition, he said the company plans to modify the dosing strategy and will not enroll additional patients in the ongoing 0.3mg/kg and 0.6mg/kg dose cohorts. The new dosing has not been revealed. Two patients have been enrolled in the breast cancer trial so far under the prior protocol, but the company did not disclose what doses were used, he added.