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$Assembly Biosciences Inc.(ASMB)$Infectious disease has definitely been on everyone’s radar for the past couple of years. And while corona made the headlines, it’s hardly the only serious pathogen out there. Hepatitis B virus (HBV) has long been known as a serious public health matter. The virus causes chronic, progressive, and severe liver disease, and while vaccines can prevent infection and transmission, there are few fully effective treatments available for patients suffering with the disease. Assembly Biosciences aims to change that situation.

The company has an active research pipeline, featuring no fewer than three core inhibitor drug candidates. This is a new class of drugs, designed to interfere with the virus life cycle by blocking the virus protein assembly and function at key points. Assembly’s leading drug candidate, vebicorvir, has proven itself in Phase 1 trials and is currently undergoing two Phase 2 triple combination trials. Interim data from these two trials is expected in the second half of the year.

That won’t be the only potential catalyst for ASMB in the near future. Two other core inhibitor drug candidates, ABI-H3733 and ABI-4334, are both at the Phase 1 clinical stage, with several data sets expected in the course of this year. In the order expected, these include clinical trial initiations, plus initial Phase 1b data for H3733 in the second half of the year and phase 1a data for 4334 by year’s end.

For Izzy Englander, the billionaire trader, this must add up to a risk worth taking, because he expanded his holding in ASMB by over 300%, picking up 1,031,087 in Q1. At current prices, this stake is worth $1.8 million.

Englander isn’t the only one bullish here. Baird analyst Brian Skorney gives ASMB an Outperform (i.e. Buy) rating, with a $15 price target that suggests a whopping 757% upside potential for the next 12 months. (To watch Skorney’s track record, click here)

The key factors for this company, in the view of Skorney, are the triple combo studies. Skorney writes, “Looking to 2H22, we believe on-treatment data from a pair of vebicorvir+nuc triple combination regimens will be important datasets, which could support optimism for curative potential... We do see upside potential beyond the current valuation should either dataset be suggestive of improved biomarker data, which could create hope for a functional cure upon cessation of therapy, down the road... All considered, while we view the current programs as high risk, we do anticipate the potential for a curative combination regimen could support improved optimism around the stock into the second half of the year."

What does the rest of the Street have to say? ASMB has picked up 4 reviews from Wall Street analysts, with a 3 to 1 breakdown of Buys over Holds for a Strong Buy consensus rating. It’s share price is $1.75 and the $11.13 average price target implies a 536% one-year upside. (See ASMB stock forecast on TipRanks)