Cantor Fitzgerald Starts LeonaBio (LONA) at Overweight

Cantor Fitzgerald analyst Eric Schmidt initiates coverage on LeonaBio (NASDAQ: LONA) with a Overweight rating.

The analyst comments "We are initiating coverage of LeonaBio (LONA) with an Overweight recommendation. LeonaBio recently changed its name (previously Athira Pharma) and its strategy after in-licensing lasofoxifene (a SERM in Phase 3 development for breast cancer) in December 2025. Concurrent with that transaction, the company executed a $90M upfront private placement with up to $146M in additional funding. In many ways, LONA is a newcomer to the public markets, and a company with a low investor profile. We think that will change. Lasofoxifene??? Hasn't that drug been around for a while? Indeed. Lasofoxifene is a third-generation SERM originally discovered and developed by Ligand and Pfizer for osteoporosis. Pfizer received a CRL for this indication back in 2009, and although the drug was approved in Europe for the same indication, it was never marketed. So why should we care now? Lasofoxifene has been re-purposed for the treatment of ER+ metastatic breast cancer patients with ESR1 mutations (ESR1m). It turns out that lasofoxifene is very potent against such mutations...more potent in vitro than SERDs and PROTACs. And this potency has translated into compelling clinical activity in two Phase 2 trials: ELAINE-1 n=103 patients with ER+ ESR1m mBrCA that progressed after aromatase inhibitors and CDK4/6 inhibitors were randomized to lasofoxifene or fulvestrant. mPFS directionally favored lasofoxifene (24.2 weeks versus 16.2 weeks; p=0.138), as did the clinical benefit rate (36.5% vs. 21.6%; p=0.117), ORR (13.2% vs. 2.9%; p=0.124) and 12-month PFS rate (30.7% versus 14.1%). ELAINE-2 A similar patient population was enrolled in this single-arm, n=29 patient study. Patients were treated with lasofoxifene + abemaciclib (CDK4/6i). mPFS was ~13 mos, which is one of the best results reported in this population, a higher mPFS than SERD monotherapies or combinations. So how can I make money in this stock? The pivotal ELAINE-3 trial is comparing lasofoxifene+abemaciclib to fulvestrant+abemaciclib. This latter combination was studied in the postMONARCH study (all-comers population), resulting in an mPFS of ~6 months."

For an analyst ratings summary and ratings history on LeonaBio click here. For more ratings news on LeonaBio click here.

Shares of LeonaBio closed at $5.81 yesterday.

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