The latest biotech stock to explode in price, Nektar Therapeutics (NKTR 19.10%) was quite the outperformer on the stock exchange for the second day in a row. On Wednesday, one day after delivering excellent news from the lab, the company's shares leaped 19% higher on a significant analyst price target change.
A clear buy, says analyst
Well before market open, H.C. Wainwright's Arthur He poured some rocket fuel into his Nektar price target, setting it anew at $120 per share. That's far above his previous level, which was a mere $6.50. In making the change, he left his buy recommendation intact.
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In what's hardly a surprising development, He's adjustment was due to the positive results in the latest completed clinical trial for Nektar's eczema drug rezpegaldesleukin. The study put the medicine through its paces for the treatment of moderate-to-severe atopic dermatitis (AD), a form of eczema. In the analyst's view, it did well enough to become a top drug in the treatment of the affliction.
On Tuesday, the biotech announced, no doubt with immense satisfaction, that rezpegaldesleukin met all of its primary and secondary endpoints in the phase 2b trial. After 16 weeks of treatment with the subcutaneous drug, patients demonstrated a 53% to 61% improvement in symptoms when measured with an eczema index. This compared very favorably to 31% for patients taking a placebo.
Vast potential
This easily makes Nektar's drug the success of the week in the biotech world. As pointed out by He, Rezpegaldesleukin clearly has potential to treat the many people who suffer from AD. As such, the progress of the drug -- and its developer -- will be exciting to watch going forward.
