On Monday, TD Cowen reaffirmed its Buy rating on shares of Humacyte (NASDAQ:HUMA) with a consistent price target of $10.00. This confirmation follows a recent call hosted by Humacyte with three vascular surgeons experienced in using the company’s ATEV (Artificial Tissue Engineered Vessel) in complex cases under expanded access.
During the call, the surgeons shared insights into their use of ATEV, providing evidence that supports the clinical value of Humacyte’s technology. Their experiences suggest potential for strong early commercial adoption of ATEV, contingent on receiving FDA approval.
The feedback from these key opinion leaders (KOLs) has reinforced TD Cowen’s positive outlook on Humacyte’s prospects. The firm’s analyst highlighted the significance of the surgeons’ testimonies as validation of the platform’s clinical benefits.
Humacyte’s ATEV is designed to be used in vascular surgeries, and the company is currently awaiting FDA approval. The product’s adoption in the market is anticipated to be robust, based on the experiences shared by the surgeons during the call.
The $10.00 price target set by TD Cowen indicates the firm’s expectation of Humacyte’s stock performance. The reiteration of the Buy rating suggests continued confidence in the company’s growth potential and the success of its ATEV product.
In other recent news, Humacyte, Inc., a clinical-stage biotech company, has been granted a U.S. Patent for its BioVascular Pancreas (BVP), a device aimed at treating type 1 diabetes. Furthermore, the company reported a net loss of $56.7 million for the second quarter of 2024, even as it made significant progress in its product pipeline.
This includes positive results from the Phase 3 trial of its Acute Tissue Engineered Vascular (ATEV) product, although the review of the ATEV for vascular trauma has been postponed by the FDA.
Investment firm EF Hutton initiated coverage on Humacyte with a Buy rating, basing this positive outlook on the company’s innovative approach to medical treatments. Similarly, Benchmark has reiterated a Buy rating on Humacyte’s shares, following the company’s second-quarter filings. TD Cowen also maintained a Buy rating for Humacyte, expressing confidence in the company’s potential for growth and innovation.
Humacyte also reported positive long-term results from a humanitarian program using its ATEV to treat severe vascular injuries in a military setting. These findings have been included in Humacyte’s submission to the FDA, further strengthening the case for the potential impact of their product on the medical field.
InvestingPro Insights
Complementing TD Cowen’s optimistic outlook on Humacyte (NASDAQ:HUMA), recent data from InvestingPro reveals some interesting financial metrics. The company’s market capitalization stands at $652.85 million, reflecting investor confidence in its potential. Notably, Humacyte has demonstrated a strong price performance, with a 90.44% total return over the past year and an impressive 79.42% return in the last six months.
InvestingPro Tips highlight that Humacyte holds more cash than debt on its balance sheet, which could provide financial flexibility as it awaits FDA approval for its ATEV product. Additionally, the company’s liquid assets exceed short-term obligations, potentially positioning it well for the anticipated commercial phase.
However, it’s important to note that Humacyte is not currently profitable, with a negative gross profit of $77.12 million in the last twelve months as of Q2 2023. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Humacyte, providing a deeper understanding of the company’s financial health and market position.
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