Indaptus Therapeutics maintains steady target with Buy rating

H.C. Wainwright maintained a Buy rating and a $12.00 price target on Indaptus Therapeutics (NASDAQ:INDP), following the company’s recent announcement regarding its Phase 1 trial of Decoy20. The safety review committee has given the green light for unrestricted patient enrollment at the lower Decoy20 dose after reviewing weekly administration data.

The committee, which had previously convened in August to assess safety data at both the higher and lower doses, has now decided to continue patient dosing at the lower dose on a weekly basis and to begin dosing at the higher dose with the same frequency. The treatment’s safety profile to date is consistent with the expected mechanism of action, with the most significant treatment-related adverse events being Grade 2 infusion-related reactions and Grade 2 hypotension, both of which are transient.

Decoy20 is a non-pathogenic Gram-negative bacteria-based treatment designed to act as a decoy, activating a broad antitumor response from the body’s innate and adaptive immune systems. It has been shown to activate Toll-like receptors (TLRs) in preclinical studies, which are key in mounting a strong defense against tumors without causing excessive toxicity. The treatment is intended to provoke a robust immune activation followed by rapid clearance from the body.

The favorable safety data and the potential of Decoy20 have prompted plans to advance the candidate into combination studies with a checkpoint inhibitor in the following year. This decision is supported by preclinical studies where the Decoy platform, in combination with checkpoint therapy, led to tumor eradication.

H.C. Wainwright’s reiteration of the Buy rating and the 12-month price target of $12 underscores the firm’s positive outlook on Indaptus Therapeutics’ progress and the therapeutic potential of Decoy20.

Biotech firm Indaptus Therapeutics has reported a successful funding round, raising approximately $3 million through the sale of shares and warrants. The company sold 1,643,837 shares of common stock, alongside unregistered warrants, at an effective purchase price of $1.825 per share and warrant. Paulson Investment Company, LLC acted as the exclusive placement agent for this transaction. The funds are expected to be allocated towards research and development activities, general corporate purposes, and working capital.

Indaptus has also shared positive results from its Phase 1 clinical trial of Decoy20, an investigational treatment for patients with solid tumors. The data presented at the American Society of Clinical Oncology (ASCO) Annual Meeting revealed significant immune responses induced by Decoy20, with adverse events reported as generally low-grade and transient.

InvestingPro Insights

Recent InvestingPro data offers additional context to Indaptus Therapeutics’ (NASDAQ:INDP) current financial position and market performance. Despite H.C. Wainwright’s optimistic outlook, the company faces some financial challenges. InvestingPro Tips indicate that Indaptus is not profitable over the last twelve months and analysts do not anticipate profitability this year. This aligns with the reported adjusted operating income of -$16.48 million for the last twelve months as of Q2 2023.

On a positive note, Indaptus holds more cash than debt on its balance sheet, with liquid assets exceeding short-term obligations. This financial cushion could be crucial as the company advances its Decoy20 clinical trials and plans for combination studies with checkpoint inhibitors.

The stock has experienced significant volatility, with a 14.93% return over the last week but a -42.25% return over the last three months. This volatility may reflect the market’s reaction to clinical trial developments and the company’s progress with Decoy20.

For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Indaptus Therapeutics, providing a deeper understanding of the company’s financial health and market position.

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