Argenica Therapeutics' (ASX:AGN) ARG-007 drug candidate is supported by a compelling body of evidence in patients with severe strokes, which represents a "highly commercially attractive opportunity," Euroz Hartleys said in a Friday note.

It completed a cardiac safety assay for its ARG-007 drug candidate, the third and final safety study requested by the US Food and Drug Administration, addressing the last outstanding requirement of the clinical hold placed on its Investigational New Drug application to begin trials in the US. This is a key milestone, clearing the path to its proposed Phase 2b trial in ischaemic stroke.

In parallel, the firm is advancing ARG-007 toward a Phase 1b trial in traumatic brain injury and is in the final stages of talks with hospital and academic partners. This gives the company a second shot in another large market, with non-dilutive funding adding to the appeal.

The investment firm retained its speculative buy rating on Argenica as well as its AU$1.30 per share price target.