Akari Therapeutics: Maxim Group initiates coverage with Buy rating, $5 PT.

Akari Therapeutics: Maxim Group initiates coverage with Buy rating, $5 PT.

Investing.com - Maxim Group has initiated coverage on Akari Therapeutics (NASDAQ:AKTX) with a Buy rating and a $5.00 price target. The stock, currently trading at $1.13 with a market capitalization of $37 million, has been identified as an "under-the-radar" opportunity in the high-value antibody drug conjugate (ADC) space. Maxim Group highlighted Akari’s lead asset, AKTX-101, which is a preclinical PH1-Trop2 candidate for solid tumors that has demonstrated efficacy as a single agent, synergy with checkpoint inhibitors, and favorable safety profiles.

The research firm noted that Akari’s ADCs deliver PH1, a novel spliceosome inhibitor that induces both cytotoxicity and neoantigen production. This approach may avoid toxicities associated with microtubule inhibitors and DNA-damaging agents commonly used as payloads for ADCs. Maxim Group also pointed out that Akari has a cash runway into the fourth quarter of 2025 and is addressing its capital needs.

Recent developments underscore Akari’s strategic focus on expanding its oncology business and strengthening its intellectual property portfolio. The company held its Annual General Meeting, where shareholders approved an increase in shares available under the 2023 Equity Incentive Plan and re-elected all director nominees. Additionally, shareholders ratified BDO USA, P.C. as the independent registered public accounting firm and approved a proposal authorizing the board to allot shares and grant rights up to $20 million through June 2030. Akari also secured a patent in India for its PH1 payload technology, which is designed for cancer treatment applications. This patent adds to Akari’s existing intellectual property portfolio, which already includes patents in the United States, China, and Israel. Furthermore, Akari appointed Mark F. Kubik as the new Head of Business Development - Oncology, bringing over 25 years of industry experience to the role. Kubik will focus on advancing Akari’s antibody drug conjugate platform and its lead asset, AKTX-101.

Despite the stock’s 69% decline over the past year, analysts maintain a consensus Buy rating with a $7 price target. InvestingPro data reveals the company’s current ratio of 0.16 and negative EBITDA of $14.2 million in the last twelve months, highlighting the importance of addressing these capital requirements.

References:
[1] https://za.investing.com/news/analyst-ratings/maxim-group-initiates-coverage-on-akari-therapeutics-stock-with-buy-rating-93CH-3795168