Last Updated: 17 Sep 2024
Executive Summary
Longboard Pharmaceuticals Inc. (LBPH) is a clinical-stage biopharmaceutical company focused on developing drugs for neurological diseases. The company has a market capitalization of $1.33 billion and is headquartered in San Diego, California. LBPH's stock is currently trading at $30.74, with a 52-week high of $40.48 and a 52-week low of $3.60.
Company Overview
LBPH's lead drug candidate is LBP-001, a small molecule inhibitor of the LINGO-1 protein. LINGO-1 is a negative regulator of myelin growth, and its inhibition has been shown to promote myelin repair in animal models of demyelination. LBPH is currently conducting a Phase 2 clinical trial of LBP-001 in patients with multiple sclerosis (MS).
In addition to LBP-001, LBPH is also developing LBP-002, a small molecule inhibitor of the Nogo-A protein. Nogo-A is another negative regulator of myelin growth, and its inhibition has also been shown to promote myelin repair in animal models of demyelination. LBPH is currently conducting a Phase 1 clinical trial of LBP-002 in healthy volunteers.
Fundamental Analysis
LBPH is a pre-revenue company, and as such, its financial statements do not provide much insight into its financial health. However, the company has a strong cash position, with $120.6 million in cash and equivalents as of June 30, 2024. This should provide the company with enough runway to fund its clinical trials through 2025.
Technical Analysis
LBPH's stock price has been in a downtrend since reaching a 52-week high of $40.48 in January 2023. The stock broke below its 200-day moving average in June 2023 and has been trading below this level ever since. The stock is currently trading at its 52-week low of $30.74.
The technical indicators are bearish for LBPH. The relative strength index (RSI) is below 30, which indicates that the stock is oversold. The moving average convergence divergence (MACD) is also below zero, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for LBPH is bearish. The stock is trading at its 52-week low and the technical indicators are bearish. The stock is likely to continue to trade lower in the short term.
Long Term Outlook
The long-term outlook for LBPH is more bullish. The company has a strong cash position and a promising pipeline of drug candidates. If LBPH's clinical trials are successful, the stock could rebound significantly.
Analyst Recommendations
The consensus analyst rating for LBPH is a "Buy". Three analysts have a "Strong Buy" rating, four analysts have a "Buy" rating, and zero analysts have a "Hold", "Sell", or "Strong Sell" rating. The average analyst target price is $62.88, which represents a potential upside of 104.5% from the current price.
