Wednesday, July 27, 2022

Ayala Pharmaceuticals (AYLA)
Stock Rises As Data Milestone Approaches and Public Offering Cancelled

Ayala Pharmaceuticals, Inc. is a clinical-stage oncology company focused on developing and commercializing small molecule therapeutics for patients suffering from rare and aggressive cancers, primarily in genetically defined patient populations. Ayala’s approach is focused on predicating, identifying and addressing tumorigenic drivers of cancer through a combination of its bioinformatics platform and next-generation sequencing to deliver targeted therapies to underserved patient populations. The company has two product candidates under development, AL101 and AL102, targeting the aberrant activation of the Notch pathway with gamma secretase inhibitors to treat a variety of tumors including Adenoid Cystic Carcinoma, Triple Negative Breast Cancer (TNBC), T-cell Acute Lymphoblastic Leukemia (T-ALL), Desmoid Tumors and Multiple Myeloma (MM) (in collaboration with Novartis). AL101, has received Fast Track Designation and Orphan Drug Designation from the U.S. FDA and is currently in a Phase 2 clinical trial for patients with ACC (ACCURACY) bearing Notch activating mutations. AL102 is currently in a Pivotal Phase 2/3 clinical trials for patients with desmoid tumors (RINGSIDE) and is being evaluated in a Phase 1 clinical trial in combination with Novartis’ BMCA targeting agent, WVT078, in Patients with relapsed/refractory Multiple Myeloma. For more information, visit www.ayalapharma.com.

Robert LeBoyer, Vice President, Research Analyst, Life Sciences , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

AYLA Traded Higher On Unusual Volume.  On July 25, Ayala filed a request to withdraw its S-1 Registration statement for the public offering it filed on July 18.  The stock closed at $0.87 per share, then traded as high as $2.42 per share (up 178%) before closing at $1.69 per share on July 26.  Daily volume was 101.6 million, compared with its 3-month average volume of 78.5 thousand shares per day.

Part B of The RINGSIDE Trial Could Be Driving The Stock.  The Phase 2/3 RINGSIDE trial is a two-part trial testing AL102, Ayala’s gamma secretase inhibitor that blocks activation of the NOTCH signaling pathway.  Tumors with mutations in the NOTCH pathway are associated with a more aggressive course of disease and poor outcomes. RINGSIDE is testing AL102 in desmoid tumors, a rare cancer of the connective tissue….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.