Financial Results Reported for 4Q and FY2021. Axcella Reported a 4Q21 loss of $17.9 million or $(0.46) per share, bringing the full year loss to $64.6 million or $(1.70) per share. Clinical trial enrollment is progressing as expected, with data announcements expected in 2H22. The company reported cash of $55.0 million on December 31, excluding the registered direct offering of $25.0 million completed in March 2022.Long COVID Phase 2a Trial Has Begun Axcella has begun enrolling patients in a Phase 2a trial designed to test AXA1125 on Long COVID symptoms of fatigue and muscle weakness. This double-blind placebo-controlled trial treats patients with either AXA1125 or placebo for 28 days. It has a target enrollment of 40 patients, with endpoints including measures of muscle recovery time after exertion. The trial is being conducted at the University of Oxford (UK) with data expected in 3Q22.EMMPACT Trial Expected To Report Data In 3Q22. The Phase 2b EMMPACT trial for AXA1125 in NASH continues to enroll patients on schedule. This double-blind placebo-controlled study treats patients for 48 weeks to evaluate efficacy and safety. Interim data is expected in 3Q22. In February 2022, AXA1125 received Fast Track designation from the FDA in the NASH indication.EMMPOWER Trial Enrollment Continues The Phase 2 EMMPOWER trial is testing AXA1665 in OHA (overt hepatic hepatitis), a complication of late-stage liver disease that causes toxic metabolites to circulate through the bloodstream. These metabolites cause symptoms throughout the body, affecting mental processes, digestive function, and muscle wasting. The trial began enrolling patients in June 2021 for a 24-week treatment period.Conclusion. Axcella continues to make progress in patient enrollment and expects to report data from two of its trials in 2H22. We also point out that its EMM (endogenous metabolic modulator) drugs are amino acid compositions formulated as powders that the patient dissolves in water before drinking. This simple administration can easily be combined with other medications the patient is taking. We expect the stock to be driven by these data presentations, and reiterate our Outperform rating and $10 price target. Read More >>