Maxim Group resumed coverage of Moleculin Biotech (NASDAQ:MBRX) with a “buy” rating and $3 price target. The stock closed at $1.11 on June 5.
On May 1, the SEC suspended trading in Moleculin, citing questions about the accuracy of public information about the company’s WP1122 drug candidate.
Specifically, third parties made claims and distributed information, without company solicitation or knowledge, about the potential efficacy and clinical development of WP1122 as a treatment for coronavirus, writes analyst Jason McCarthy. The trading halt was lifted on May 28.
WP1122 is a pro-drug of 2-DG, which significantly increases the molecule’s stability and permeability. In order to support a study of WP1122 as a potential treatment for COVID-19, Moleculin has enlisted a preclinical CRO, ImQuest Biosciences, to conduct pre-IND enabling studies.
In addition, the FDA has granted the company’s request for a pre-IND meeting, with an IND filing expected in the third quarter of 2020, Mr. McCarthy added.
The IND for WP1122 would be reviewed through the FDA’s special Coronavirus Treatment Acceleration Program) that is prioritizing testing of therapeutics for COVID-19.