Replies to post #145 on UNITY Biotechnology Inc (UBX)

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Unity Biotechnology Shares Plumb New Depths After Study Setback >UBX
11:44 am ET March 27, 2023 (Dow Jones) Print

By Colin Kellaher

Shares of Unity Biotechnology Inc. lost more than half of their value and hit an all-time low Monday after the biotechnology company's lead pipeline candidate UBX1325 missed a key goal in a Phase 2 study in wet age-related macular degeneration, or wet AMD.

Unity said UBX1325 failed to achieve non-inferiority versus aflibercept at 24 weeks on the best corrected visual acuity test.

In a research note, Mizuho analysts Salim Syed and Erik Lavington said they cut their price target on Unity shares to $6 from $12 after removing wet AMD, saying they don't see a likely viable go-forward for UBX1325 in the indication.

Mizuho also lowered its probability-of-success forecast for UBX1325 in diabetic macular edema to 25% from 33%.

Unity said it plans to assess and optimize its resource allocation for future development of UBX1325 after it fully analyzes the study results.

The Mizuho analysts said Unity's $75 million of net cash is worth roughly $5 of their $6 price target, and they noted that the market may not want full credit for the cash due to continued spending by the South San Francisco, Calif., company.

Unity shares were recently changing hands at $2.00, down nearly 52% and reaching their lowest level since the company went public in May 2018.