EF Hutton analyst Jason Kolbert, in a research report published on October 3, 2024, maintained a Buy rating on OS Therapies Inc. (OSTX:NYSEAMERICAN) with a price target of US$21.00. The report follows OS Therapies' announcement that the last patient enrolled in their Phase 2b trial for OST-HER2 in recurred, resected Osteosarcoma (OS) has completed their final radiographical evaluation.
Kolbert highlighted the significance of this milestone, stating, "The last patient (n=41) enrolled in the P2b trial in recurred, resected Osteosarcoma (OS) has completed their final radiographical evaluation at 52 weeks, and the treatment period for the clinical trial has now ended. Topline data readout is expected to be announced in the fourth quarter of 2024."
The analyst outlined the next steps for the company, noting, "The company is preparing to request a Type C Meeting with the U.S. Food & Drug Administration (FDA) and to make any protocol adjustments based on FDA's recommendations. Following those adjustments, the company will lock the clinical trial database in preparation for data analysis."
Regarding OST-HER2's potential, Kolbert explained, "OST-HER2 is a vaccine designed to prevent metastasis, delay recurrence, and increase overall survival in patients with Osteosarcoma." He added that the AOST-2121 Phase 2b clinical trial "is designed to demonstrate efficacy in patients with recurrent metastatic disease to the lungs and are highly likely to continue to recur."
The report highlighted the primary endpoints of the study: "Event Free Survival — EFS defined as absence of recurrence of primary tumor or metastasis) at 12 months and Overall Survival — OS at 36 months, with interim OS endpoints at 12 months, 18 months and 24 months."
Kolbert's valuation methodology for OS Therapies is based on modeling Osteosarcoma as the first indication. He explained, "We apply a 10% Probability of Success — POS factor and a 30% discount rate (r) to each model. We assume additional capital will be raised in our final share count. We apply these projections to our Free Cash Flow to the firm, or FCFF discounted EPS or dEPS, and sum-of-the-parts or SOP models."
The analyst concluded, "These are equal-weighted, averaged, and rounded to the nearest whole number to derive our 12-month price target of US$21.00."
Kolbert also outlined several risk factors, including clinical/regulatory risk, partnership and financial risk, commercial risk, legal and intellectual property risk, and market share risk.
In conclusion, EF Hutton's maintenance of a Buy rating and US$21 price target reflects a positive outlook on OS Therapies' potential in developing OST-HER2 for Osteosarcoma treatment. The share price at the time of the report of US$2.91 represents a potential return of approximately 622% to the analyst's target price, highlighting the significant upside potential if the company's clinical trials prove successful.
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Disclosures for EF Hutton, Os Therapies Inc., October 3, 2024
Analyst Certification I, Jason Kolbert, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report.
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