H.C. Wainwright Starts Atossa Genetics (ATOS) at Buy

H.C. Wainwright analyst Emily Bodnar initiates coverage on Atossa Genetics (NASDAQ: ATOS) with a Buy rating and a price target of $4.00.

The analyst comments "A validated MoA with potential for improved efficacy and safety. Atossa's pipeline centers around Z-endoxifen, which is the active metabolite of tamoxifen, a drug initially approved in 1977 to treat advanced breast cancer. Tamoxifen is a pro-drug, meaning it needs to be turned into its active form, endoxifen, in order to be effective. A liver enzyme called CYP3A4 converts tamoxifen into N-desmethyl-tamoxifen and then CYP2D6 creates endoxifen. Endoxifen has two isomers, E-endoxifen which is the inactive form, and Z-endoxifen, which is the active form being evaluated by Atossa. Both active metabolites of tamoxifen, endoxifen and 4-OHT are 100x more potent than tamoxifen, meaning that endoxifen could potentially be more effective than tamoxifen. Endoxifen also targets ERα for degradation in breast cancer cells unlike tamoxifen. This makes endoxifen a selective estrogen receptor modulator (SERM) and degrader (SERD). Z-endoxifen has a half-life of 49-68 hours compared to 7 days with tamoxifen and reaches steady-state within 7 days compared to 4 weeks for tamoxifen, which enables a quick onset of action and potential for a better safety profile as the drug is washed out sooner. Atossa is running a Phase 2 study called Karisma, evaluating Z-endoxifen for reduction of measurable breast density (MBD) with initial data in 2H24 and a Phase 2 study called EVANGELINE evaluating Z-endoxifen for treatment of neoadjuvant breast cancer with topline data in 3Q26 (and potentially interim data sooner). In addition, the company is evaluating Z-endoxifen in a collaboration study called I-SPY-2 with Quantum Leap Healthcare Collaborative treating 20 patients with neoadjuvant breast cancer with initial data in 2H24. With the company's share price trading near cash levels, we believe investors are currently attributing no value to the pipeline, and we see significant upside potential on 2H24 catalysts."

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

Shares of Atossa Genetics closed at $0.94 yesterday.

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