This microcap biotech could prove to be a gigantic winner. Adverum Biotechnologies Inc. (NASDAQ: ADVM) is a clinical-stage gene therapy company that develops gene therapy product candidates to treat ocular and rare diseases.
Its lead product candidate is ADVM-022, a single intravitreal injection gene therapy candidate used for the treatment of patients with chronic retinal diseases, including wet age-related macular degeneration and diabetic macular edema. Adverum Biotechnologies has license and collaboration agreements with the University of California, Cornell University, GenSight Lexeo and Virovek.
The stock was hit hard recently in reaction to a suspected unexpected serious adverse reaction of hypotony (clinically relevant decrease in ocular pressure). The event happened during a Phase 2 trial valuating ADVM-022 gene therapy to treat diabetic macular edema. The company immediately decided to unmask the 36-patient trial to determine if any other treated patients might have similar issues.
Despite the setback, Goldman Sachs kept its Buy rating but lower the price target to $10. The consensus target on Adverum Biotechnologies is $7.88. Shares have traded below $4 so far this month.
Some feel that this top company would be an outstanding addition to a networking giant as a takeover candidate. Infinera Corp. (NASDAQ: INFN) provides Intelligent Transport Networks, enabling carriers, cloud operators, governments and enterprises to scale network bandwidth, accelerate service innovation and simplify optical network operations.
Infinera’s portfolio of solutions includes optical transport platforms, converged packet-optical transport platforms, optical line systems, router platforms and a suite of networking and automation software offerings.
Last summer, Infinera and Windstream completed a live network trial that successfully achieved 800G single-wavelength transmission over 730 km across Windstream’s long-haul network between San Diego and Phoenix. The results of the trial mark a major milestone in optical networking by demonstrating that ultra-high-speed optical transmissions, such as 700G and 800G, powered by Infinera’s ICE6 optical engine and Windstream’s high-performance fiber network, can be deployed in real-world network applications over significant distances.
The $12 Goldman Sachs price objective is above the $10.83 consensus target. Infinera stock was trading $8.50 late last week.