01:03 PM EDT, 03/20/2024 (MT Newswires) -- Design Therapeutics ( DSGN ) was trading higher on Wednesday, rising by nearly 9% after reporting a smaller-than-expected Q4 net loss a day earlier and outlining progress with its prospective treatment for Friedreich Ataxia that analysts at RBC Capital Markets said provides the biopharmaceuticals company with a "compelling second shot" at eventually bringing the genetic therapy to market.

Design last August said it was shifting focus to develop an improved formulation of its DT-216 product candidate after disclosing early results from phase 1 testing for the prospective FA therapy. Following Tuesday's update by the company, the RBC analysts said Design appears to have resolved the pharmacokinetics issues seen with its initial formulation and also removed a secondary ingredient that may have been causing injection site reactions.

But while the next-generation formulation looks promising, RBC cautioned in Wednesday's new research note that "it will still take more time, likely in 2025," before the company can produce more proof-of-concept data and how the product candidate compares with other prospective Friedreich Ataxia treatments. Design's other pipeline candidates for other indications also may demonstrate their potential, the analysts said, but similarly are several years away from realization.

RBC on Wednesday reiterated its sector perform, speculative risk, rating for Design Therapeutics ( DSGN ) while also maintaining a $4 price target for its shares.

Price: 2.81, Change: +0.22, Percent Change: +8.30