Monoclonal antibodies approach still holds promise for other indications, says Piper Jaffray
Piper Jaffray analyst Edward Tenthoff notes that Arsanis ended Q3 with cash of $40.8M, guided to fund operations into Q1 2020. The company continues to analyze the reason for the unexpected failure of the Phase II study of ASN100 for prevention of Staph aureus pneumonia, he highlights, adding that Arsanis has discontinued development and plans a 44% workforce reduction by year-end 2018. Despite the failure in S. aureus, Tenthoff believes every infection is different and a preventative approach with monoclonal antibodies holds promise for other indications. ASN500 is expected to enter a Phase I study in 2019, he notes. The analyst reiterates Neutral rating and a $2.50 price target on the shares.