Ayala Is Developing Drugs To Block Activation Of The Notch Pathway. Under normal conditions, the Notch pathway provides signals that regulate cell growth and maintenance. Mutations in the Notch pathway can lead to loss of regulation and proliferation of cancerous cells. Ayala has developed drugs that block gamma secretase, an enzyme that activates the Notch pathway.AL102 and AL102 Act By Inhibiting An Activation Step In The Notch Pathway. Ayala has developed AL101 and AL102, two drugs that block gamma secretase, an enzyme needed to activate the Notch pathway. This stops the signaling steps that lead to overactivity and proliferation of cancer cells.Ayala Is In Trials For Rare Cancers. Tumors with Notch mutations have a more aggressive course of disease with poor prognosis. Ayala is testing its drugs in rare types of cancer or cancers that are difficult to treat, where the effect of inhibiting the Notch mutations can been identified and determined.Four Clinical Trials Are In Progress. The most advanced indication is the Phase 2/3 RINGSIDE trial in desmoid tumors, a rare cancer of the connective tissue. The Phase 2 ACCURACY trial is in progress for adenoid cystic carcinoma (ACC), a head and neck cancer. The Phase 2 TENACITY trial is in progress for triple-negative breast cancer (TNBC), and a collaboration with Novartis is testing a AL102 combination for multiple myeloma.Conclusion. Ayala is on schedule to report data from the Phase 2/3 RINGSIDE trial, the Phase 2 ACCURACY trial, and the Phase 2 TENACITY trial beginning in mid-2022. We believe the stock will be driven by these data announcements.Over the past several months, we have seen the impact of macroeconomic factors on biotechnology stocks, with broad declines in small capitalization stocks despite fundamental progress. We value AYLA based on comparable companies have adjusted our price target to $12 from $20 per share. Read More >>