Entera Bio Stock Could More Than Double From Here, Says Analyst

In the biotech space, big announcements often precede big share price movements; both were on tap for Entera Bio (ENTX) on Wednesday.

Entera shares took off after the company provided an update from the placebo-controlled, double blind Phase 2 trial of EB613, Entera’s drug candidate for the treatment of osteoporosis.

Following 6 months of treatment, the study achieved its key endpoints. Participants who took a 2.5 mg dose of EB613 displayed meaningful dose-related increases in bone mineral density (BMD) at the lumbar spine, total hip, and femoral neck. The 2.5 mg dose cohort exhibited a 3.78% placebo-adjusted increase, which B. Riley’s Kalpit Patel believes is in line with the “historical experience of Forteo.” Even better, the analyst also noted that the increases in BMD at total hip and femoral neck at six months is a “benefit that is typically not observed with Forteo.”

Why is this important? Well, EB613 is an oral osteoanabolic agent intended to mimic how Forteo works, but Forteo is only available as an injection. Entera’s goal is to produce an oral bone building treatment for osteoporosis – a condition which makes bones weak and more likely to break. Patients are more likely to choose an oral option over an injection, so there could be a big market available should the drug gain approval.

EB613 was also shown to be safe, with no serious adverse events reported.

If you think you’re too late to the party following this week’s gains and a year-to-date share haul of 452%, Patel has some reassuring words.

“While ENTX shares have appreciated significantly, we think the shares could gain additional momentum ahead of an end of Phase II FDA meeting (likely in 3Q21). Based on the encouraging clinical results, we increase our estimated probability of success for EB613 to 50% (vs. prior 25%),” Patel summed up.

Patel also raised the price target from $9 to $14, indicating the shares could still add ~135% of muscle over the next 12 months. No need to add, Patel’s rating is a Buy. (To watch Patel’s track record, click here)

Only one other analyst has recently thrown the hat in with a review. The additional Buy means ENTX qualifies with a Moderate Buy consensus rating. At $12, the average price target suggests shares will soar 101% over the next 12 months. (See ENTX stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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