BTIG Maintains Buy Rating on Gain Therapeutics, Raises Price Target to $9.00

BTIG analyst Thomas Shrader maintains a Buy rating on Gain Therapeutics (GANX) with a price target of $9.00, citing the company's strong analyst consensus of Strong Buy with a price target consensus of $8.00, representing a 306.09% upside from current levels. The company reported a quarterly GAAP net loss of $5.81 million, compared to a loss of $8.14 million last year.

Os Therapies Inc. (NYSEMKT: OSTX), a clinical-stage biotechnology company focused on immunotherapies for rare pediatric cancers, reported its second-quarter 2025 earnings on August 19, 2025. The company's most significant news highlighted continued progress toward regulatory milestones for its lead drug candidate, OST-HER2, alongside deepening financial losses. The net loss per share was $0.19, which was below the analyst estimate of -$0.12 per share for Q2 2025 [1].

The quarter's financial performance was marked by a net operating loss of $4.537 million, an increase of approximately 191.5% compared to the $1.557 million net operating loss in Q2 2024. This surge in operating losses was attributed to escalating regulatory and clinical trial activities, particularly costs associated with advancing OST-HER2 through the pivotal Phase 2b trial and regulatory discussions with global agencies during Q2 2025 [1].

On the clinical front, the Phase 2b trial for OST-HER2 produced strong data points. Patients receiving OST-HER2 had a 12-month event-free survival rate of 35%, while historical controls registered 20%, with a p-value of 0.0197. Interim 2-year overall survival among treated patients reached 66.6% (out of 27 patients) versus 40% for controls (p = 0.0046) for updated interim 2-year overall survival data from the Phase 2b clinical trial of OST-HER2 in recurrent, fully resected, pulmonary metastatic osteosarcoma [1].

Regulatory progress was a defining element of the quarter. The U.S. Food and Drug Administration (FDA) confirmed that OST-HER2 meets the criteria for Regenerative Medicine Advanced Therapy designation, opening the path for expedited review. The FDA assigned a Biologics License Application (BLA) number, with an End of Phase 2 meeting scheduled for August 27, 2025, to finalize preparations for an Accelerated Approval submission. Internationally, the company submitted an Innovative Licensing and Access Pathway (ILAP) application to the UK regulator and requested a rapporteur meeting with the European Medicines Agency for October [1].

Os Therapies made several strategic moves to position itself for future product launches and pipeline expansion. It announced a commercial partnership with Eversana to prepare for a potential U.S. launch of OST-HER2 in the first half of 2026 and began the necessary state licensing processes. The acquisition of Ayala Pharmaceuticals' listeria immunotherapy platform brought in additional clinical-stage and preclinical programs alongside patent protection until 2040. The creation of subsidiaries, including OS Animal Health, aimed at veterinary applications of OST-HER2, expanded the company’s potential market and set the groundwork for broader commercial activities. The launch of OS Drug Conjugates underscores an ongoing focus on antibody-drug conjugate technology for various solid tumor indications [1].

Capital management remained a major focus for the quarter. The company completed a $4.2 million capital raise through warrant exercises shortly after period end, boosting its cash reserves and providing management with a cash runway extending into mid-2026. Additionally, the company established an at-the-market equity sales agreement allowing up to $18 million in future fundraising, building financial flexibility at the cost of potential further dilution [1].

Management pointed investors to the potential sale of a priority review voucher, a special regulatory incentive that could be granted if OST-HER2 is approved by September 30, 2026. Recent sales of such vouchers ranged from $155 million to $160 million in May and June 2025, presenting a possible source of non-dilutive capital. Despite these developments, the immediate financial picture was one of continued losses and a reliance on capital markets as regulatory activities intensify. The company also gained inclusion in the Russell Microcap index, which may support liquidity and institutional investor interest [1].

No formal guidance was provided for upcoming quarters or fiscal 2025. Management communicated that the current cash position, bolstered by recent fundraising, is expected to last through mid-2026. All forward-looking commentary centered on executing regulatory milestones, such as the BLA submission, FDA meeting dates, and international approvals for OST-HER2. Major upcoming events include the End of Phase 2 meeting with the FDA on August 27, 2025, a planned BLA submission in late Q3 2025, and critical decision points with UK and European authorities in the second half of the year [1].

With no revenue at this stage and an increasing burn rate, investors will be watching the progress of regulatory reviews and OST-HER2’s potential approval timeline, as well as any inflection points in non-dilutive funding such as a possible priority review voucher sale or business development deals. OSTX does not currently pay a dividend [1].

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

References:
[1] https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/34243050/os-therapies-posts-wider-loss-in-q2/