Breast Cancer-Focused Atossa Therapeutics Can Possibly Change Treatment Paradigm: Analyst

Cantor Fitzgerald has initiated coverage of Atossa Therapeutics Inc ATOS with an Overweight rating and a price target of $5. 

Analysts Louise Chen, Carvey Leung, Wayne Wu, and Lucas Olson Duffy say that the peak sales potential of ATOS' pipeline is underappreciated. 

Cantor notes that the company's lead program (Z)-endoxifen, is a promising new selective estrogen receptor modulator (SERM).

According to published studies, (Z)-endoxifen is a competitive inhibitor of ERα and represses ERα transcriptional activity.

ATOS' (Z)-endoxifen has been shown to be well tolerated in Phase 1 studies and a small Phase 2 study of women with breast cancer. The company is studying (Z)-endoxifen in three Phase 2 studies. 

(Z)-endoxifen has the potential to work in all three areas of the Breast Cancer Paradigm - To mitigate breast cancer risk, reduce the cancer cell activity before surgery, and reduce the risk of recurrent or new breast cancer after the initial treatment.

The analyst expects positive data readouts to drive upward earnings estimate revisions and ATOS' stock higher. 

Cantor notes the market has underappreciated (Z)-endoxifen's potential across prevention settings, neoadjuvant/ Window of Opportunity, and adjuvant settings in breast cancer, as well as its safety profile.

Price Action: ATOS shares are up 16.60% at $0.87 on the last check Friday.