H.C. Wainwright starts coverage of Palvella Therapeutics with 'buy' rating

Palvella Therapeutics

26/12/2024 12:54

** Brokerage H.C. Wainwright starts coverage of drug developer
Palvella Therapeutics  PVLA.O  with "buy" rating and PT of $38 -
a 3x upside to Tuesday's close
    ** Co is testing a topical form of rapamycin called Qtorin
in late-stage studies to treat two rare and chronic skin
diseases called microcystic lymphatic malformations and
cutaneous venous malformations
    ** There is a high unmet need because no approved therapies
exist for these conditions - H.C. Wainwright 
    ** Brokerage says Palvella's formulation addresses critical
limitations of other forms of the drug, such as poor skin
penetration, systemic toxicity, and chemical instability
    ** Says doctors have expressed optimism about the potential
for a topical rapamycin therapy, as current treatments such as
lasers, surgery or off-label medicines are either ineffective or
only provide temporary relief 
    ** Late-stage data from one of the trials is expected in
early 2026 and brokerage says the drug could be launched by 2027
    ** Also expects sales of Qtorin rapamycin to grow to $381
million by 2034
    ** As of last close, stock down ~19% YTD

 (Reporting by Kamal Choudhury in Bengaluru)
 ((Kamal.Choudhury@thomsonreuters.com;))