Benzinga | Dec 1, 2021 02:08PM EST

Read Why Is Roth Capital Bullish On This Cancer-Focused Stock

* Roth Capital notes that the FDA cleared Moleculin Biotech Inc's (NASDAQ:MBRX) WP1122 to start a Phase 1 trial in glioblastoma multiforme, which will be in addition to the drug's impending parallel clinical development in COVID-19.

* Analyst Jonathan Aschoff expects several clinical data updates over the next year, with Moleculin Biotech potentially having six ongoing trials by year-end 2021.

* Moleculin Biotech is "substantially undervalued," Aschoff contends with a lower market value than the cash valuation.

* The analyst believes that the risk/reward is "highly favorable" given the numerous near-term clinical readouts.

* Aschoff has a Buy rating and a price target of $29 on the shares.

* Earlier today, FDA signed off Moleculin Biotech's Investigational New Drug (IND) application to study WP1122 for Glioblastoma Multiforme (GBM), the most aggressive malignant primary brain tumor.

* Moleculin plans to initiate a Phase 1 open-label, single-arm, dose-escalation study of the safety, pharmacokinetics, and efficacy of oral WP1122.

* Price Action: MBRX shares are down 0.48% at $2.06 during the market session on the last check Wednesday.