On Monday, Structure Therapeutics' stock (NASDAQ:GPCR) received a new Overweight rating from Morgan Stanley (NYSE:MS), accompanied by a $118 price target. The biotech firm, which is in the development stage, is working on oral small molecule medicines aimed at chronic diseases such as obesity and idiopathic pulmonary fibrosis (IPF).
The company's leading pipeline asset, GSBR-1290, is an oral GLP-1R agonist, which is currently progressing into a Phase 2b obesity trial slated to begin in the fourth quarter of 2024. This drug is part of the same pathway as existing injectable medications approved for type 2 diabetes and obesity, such as Novo Nordisk (NYSE:NVO)'s Wegovy/Ozempic and Eli Lilly (NYSE:LLY)'s Trulicity.
Morgan Stanley's analysis suggests that GSBR-1290 has a competitive profile compared to other oral diabetes and obesity treatments available on the market, like Novo's Rybelsus, and those in development, including Eli Lilly's Orforglipron, which is in Phase 3 trials. The firm anticipates the next significant update for GSBR-1290 will be the Phase 2b obesity trial data, expected by the end of 2025.
In addition to the progress of Structure Therapeutics' own pipeline, Morgan Stanley highlighted that forthcoming Phase 3 data for Eli Lilly's Orforglipron, anticipated in the first half of 2025, could be an important lateral catalyst for Structure Therapeutics.
The details of this analysis and the impact of competitor developments on Structure Therapeutics' prospects are outlined further in Morgan Stanley's report.
In other recent news, Structure Therapeutics has made significant changes to its leadership team, with Blai Coll promoted to Chief Medical Officer and Ashley Hall appointed as Chief Development Officer. These changes are in preparation for the company's upcoming Phase 2b trials of its key therapeutic candidate, GSBR-1290.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. The company has also announced plans for an underwritten public offering of 8 million American Depositary Shares, with Goldman Sachs (NYSE:GS) & Co. LLC, Morgan Stanley, Jefferies, Leerink Partners, Guggenheim Securities, and BMO Capital Markets as joint book-running managers.
Analysts from Piper Sandler and BMO Capital Markets have maintained their positive ratings on Structure Therapeutics, with Piper Sandler reaffirming its Overweight rating, noting the promising results from the GSBR-1290 program. The company has also made significant board changes, including the appointment of Angus Russell and Sharon Tetlow to the Board of Directors.
The GSBR-1290 program, an oral small molecule GLP-1 agonist targeting obesity, is expected to enter Phase 2b clinical development in the fourth quarter of 2024. These recent developments highlight Structure Therapeutics' ongoing efforts to develop oral treatments for metabolic and cardiopulmonary diseases.
As Structure Therapeutics (NASDAQ:GPCR) navigates the development of its oral small molecule medicines, recent data from InvestingPro provides additional context for investors considering the stock. The company currently holds a market cap of $2.4 billion and, reflecting the challenges typical of development-stage biotech firms, it has a negative P/E ratio of -18.11, indicating that it is not currently profitable. This aligns with an InvestingPro Tip that analysts do not anticipate the company will be profitable this year.
Despite the challenges, there are positive indicators. The company holds more cash than debt, suggesting financial stability, and liquid assets exceed its short-term obligations, which is a sign of good liquidity management. These factors are crucial for a company in the capital-intensive biotech industry. Additionally, three analysts have revised their earnings upwards for the upcoming period, hinting at potential optimism regarding the company's future performance.
For investors looking for more comprehensive analysis, there are additional InvestingPro Tips available, offering deeper insights into Structure Therapeutics' financial health and market position. With these considerations in mind, investors can better gauge the potential risks and rewards associated with investing in this biotech firm.
