Acelyrin Inc. (SLRN) is navigating a turbulent market environment, with its stock recently hitting a 52-week low of $2.2. This downturn coincides with significant developments in the company's clinical trials, including a setback in one study and progress in others. The stock's performance reflects broader market trends and investor sentiment regarding the company's prospects.
Clinical Trial Updates
Acelyrin's Phase 2b/3 study of izokibep for the treatment of uveitis did not meet its primary endpoint. The study compared izokibep to a placebo, revealing a treatment failure rate of 45% for izokibep versus 50.7% for the placebo, a difference that was not statistically significant. This outcome has led to adjustments in analyst ratings, with H.C. Wainwright maintaining a Neutral rating on Acelyrin's shares.
Despite this setback, Acelyrin is moving forward with other key programs. The company's lead program, lonafarnib, for thyroid eye disease (TED), is progressing, with TD Cowen maintaining a Buy rating on Acelyrin's shares. The Phase II study for lonafarnib has completed its first three cohorts, and the fourth is currently underway. Acelyrin anticipates sharing Phase II data and Phase III trial design details in the first quarter, following discussions with regulatory authorities.
Furthermore, Acelyrin is advancing its program for lonigutamab, another treatment for TED. The Phase 3 program, named LONGITUDE, is scheduled to begin in the first quarter of 2025, with topline data expected in the second half of 2026. This development underscores Acelyrin's commitment to addressing unmet needs in TED treatment.
Financial Position and Market Analysis
Despite the challenges, Acelyrin maintains a strong liquidity position. According to InvestingPro data, the company has a current ratio of 7.15 and holds more cash than debt on its balance sheet. Acelyrin's cash runway is projected to extend into mid-2027. The company ended Q3 2024 with $562.4 million in cash, with year-end cash guidance updated to $435 million to $450 million. Additionally, Acelyrin is preparing to acquire global rights to lonigutamab for $31 million.
Analysts at Citi and H.C. Wainwright have adjusted their price targets for Acelyrin's stock in light of these updates, while maintaining their Neutral ratings. Piper Sandler, however, has confirmed its Overweight rating, emphasizing the positive Phase 1b/2a data and potential of lonigutamab. TD Cowen has also maintained a Buy rating on Acelyrin's shares, highlighting the progress of lonafarnib.
The recent market volatility has significantly impacted Acelyrin's stock, with a 1-year change showing a decrease of -53.71%. However, recent data indicates a positive 11.15% return over the last week, with InvestingPro analysis suggesting the stock may be undervalued at current levels. Investors are closely monitoring SLRN as it navigates through these pressures, considering the broader economic factors at play.
