Unity Biotechnology Upgraded - Analyst Highlights Cash Strength & Execution

Wedbush analyst Andreas Argyrides upgraded the shares of Unity Biotechnology Inc UBX from Neutral to Outperform and raised the price target from $2 to $4.

Unity Biotechnology is developing therapeutics to slow, halt or reverse diseases of aging. Unity's initial focus is on creating medicines that target cellular senescence and aging-related biology in ophthalmologic and neurologic diseases.

Following the positive 12 week, 18 week, 24 week and 48 week results from the Ph2 BEHOLD trial for UBX1325/DME, the company is set to initiate a head-to-head Ph2b trial for UBX1325 against aflibercept in patients with DME later in 2023, notes the analyst. 

Unity Biotechnology is developing drug candidates targeting cellular senescence to treat vitreoretinal diseases. The lead candidate UBX1325 (foselutoclax) is a senolytic inhibitor for the treatment of DME and wAMD. 

The company plans to report 16wk and 24wk results from the ASPIRE trial in Q4:24 and Q1:25, respectively, says the analyst.

The analyst looks to these results to see how Q8W UBX1325 stacks up against Q8W aflibercept and to better inform the design of a Ph3 trial.

The analyst writes that at a recent roundtable, experts expressed enthusiasm for UBX1325 based on impressive anatomic and visual benefits observed out to 48 weeks.

In the recently released third-quarter earnings, Unity said it ended the quarter with cash, cash equivalents and marketable securities of $45.9 million. The analyst sees cash providing runway into Q2:25 (company guided into Q3:25).

The analyst's upgrade reflects the company's cash that can get to the Ph2b readouts in DME.

Price Action: UBX shares are trading lower by 1.09% at $1.81 on the last check Thursday.