Avenue Therapeutics initiated yesterday with a Buy at Maxim

As reported yesterday prior to the open, Maxim initiated coverage of Avenue Therapeutics with a Buy rating and 75c price target. The clinical-stage company is focused on neurologic diseases with its lead program being AJ201 for the treatment of spinal and bulbar muscular atrophy, or SBMA, a rare neuromuscular disease for which there are currently no approved therapies. AJ201 is the subject of an ongoing Phase 1b/2a that has data expected in the first half of 2024 and this is “a key event in the Avenue story as its share price has remained in the penalty box” following two CRLs for its IV tramadol program in 2020 and 2021, the analyst tells investors. With about a $4M market cap, the risk/reward profile is “favorable,” the analyst added.