Summary

  • Structure Therapeutics received a price target upgrade from broker BMO after its obesity treatment drug candidate passed an early-stage trial.
  • BMO believes that the lack of any discontinuations caused by adverse events during the drug’s early study could potentially be positive for the company.
  • Structure Therapeutic’s net loss of US$23.3 million in the three months ending on June 30, 2023, was higher than that in the previous corresponding period.

Drugmaker Structure Therapeutics (NASDAQ: GPCR) saw its share price rising on October 3, 2023, after broker BMO raised its price target on the company. BMO Capital Markets raised its price target on GPCR from US$40 to US$83, leading the stock price to rise by 1.6% on Tuesday.

GPCR Price Chart; Source: EODHD/Others

As per data available on EODHD/Others, five analysts have covered the stock. Of these five analysts, three have given it a ‘strong buy’ rating and two have given it a ‘buy’ rating.

At the same time, the mean recommendation rating on GPCR stands at 1.4 on five. Here, one indicates a ‘strong buy’ rating, while five stands for a ‘strong sell’ rating.

Broker BMO positive on GPCR’s obesity drug candidate

As per a EODHD/Others report, BMO believes that Structure Therapeutics’ obesity drug candidate GSBR-1290 shows promising signs of success. The drug recently succeeded in a small early-stage trial, which led to the stock price rising by around 70% on Friday.

Following the success of the trial, brokers Guggenheim Securities and Leerink Partners raised their price target on the stock. On September 29, Guggenheim revised its price target on GPCR to US$92 and Leerink raised its price target to US$97.

Brokerage BMO stated that another factor acting in favor of the drug is the lack of any discontinuations caused by adverse events during its early study. This factor is also expected to play positively among investors.

BMO added that the 12-week data from the drug, which will be released later this year, is highly anticipated by investors for validation.

The obesity treatment market is also expected to expand to above US$10 billion in 2033, as per BMO. The oral drug category in the obesity treatment market is expected to drive growth, followed by injectables.

GPCR price more than doubles since its debut despite losses

Structure Therapeutics reported a net loss of US$23.3 million in the three months ending on June 30, 2023. The net loss in Q2 2023 was higher than that in the previous corresponding period of US$15.5 million.

The cash and cash equivalents as at the end of June 30, 2023, were US$224.6 million. The current cash, cash equivalents and short-term investments are expected to finance operations through at least 2025.

A EODHD/Others report suggests that GPCR price has more than doubled since it debuted on Nasdaq in February.

GPCR has a consensus mean price target of US$81.80, an upside potential of 38.79% over the stock’s closing price on Tuesday.

The stock closed 4.13% higher on Tuesday at US58.94. GPCR reached its 52-week high on September 29, 2023, at US$65.51. As at the end of trade on Tuesday, the stock price corrected itself by 10.03%. Meanwhile, over a 6-month period, GPCR’s closing price on Tuesday was a whopping 138.43% higher.