DFFN - Diffusion raised to Buy at H.C. Wainwright after Q2 update on lead asset

H.C. Wainwright upgraded clinical-stage biotech Diffusion Pharma ( NASDAQ: DFFN ) to Buy from Neutral on Tuesday, citing the company's Q2 2022 update on its lead candidate Trans Sodium Crocetinate (TSC) in glioblastoma multiforme (GBM).

Following positive data for TSC from the dose exploration study, Altitude, the company, and the FDA agreed on a Phase 2 trial design for the candidate in GBM.

The open-label dose-escalation trial, expected to start later this year, is designed to evaluate TSC versus the standard of care in patients newly diagnosed with GBM.

"Overall, we are encouraged by the data from Altitude and believe that with the updated dosing schedule, TSC could show significant promise in a new GBM study," the analysts led by Swayampakula Ramakanth wrote.

Noting DFFN's plans to share initial data from the study by the end of 2023, the team projects the U.S. marketing approval for TSC in 2H 2025 and estimates it to generate $45M of risk-adjusted revenue by 2031.

With these forecasts, H.C. Wainwright upgrades the stock with a 12-month price target of $9.50.

Read more about the TSC's positive effects on oxygenation and post-exercise recovery as demonstrated in the Altitude Trial.

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