Genprex Inc (NASDAQ:GNPX) shares rose Wednesday after analysts at Noble Capital Markets reiterated its Outperform rating of the company and upped its price target to $7 from $5.
The firm pointed to the nearly $2.6 million grant awarded to Genprex on Tuesday by the National Institutes of Health, which will fund preclinical research for proof-of-principle studies in preparation for human gene therapy clinical trials of the drug GPX-002 in Type 1 diabetes.
The company’s lead drug, Oncoprex, is currently being evaluated in combination with erlotinib for the treatment of non-small cell lung cancer (NSCLC) in a Phase 2 clinical study. The company plans to evaluate the drug in combination with the existing cancer drugs Tagrisso and Keytruda over the next 12 months.
READ: Genprex advisor George Gittes wins $2.6 million NIH grant to develop diabetes gene therapy, GPX-002
Shares of Genprex rose 4.4% Wednesday morning to $3.54.
Both NSCLC and diabetes markets represent tremendous market opportunities for the company, Noble wrote. NSCLC sales reached $22.6 billion last year, the firm noted, and Type 1 diabetes sales were $4.1 billion.
“In our view, GNPX continues to manifest a strong profile,” Noble wrote. “The shares gained over 1000% [to date in 2020]. We foresee value expansion upon additional data readouts and initiation of clinical trials in the next 12 months. Based on the recent developments and milestones and the expansion of potential market opportunity, we are increasing our price target to $7 from $5... [and] we are reiterating our Outperform rating.”
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