On Wednesday, Stifel maintained its Hold rating on shares of ALX Oncology (NASDAQ:ALXO), with a steady price target of $3.00. The decision follows the release of positive results from a clinical trial combining ALX Oncology's evo with JAZZ Pharmaceuticals' zanidatamab, which demonstrated a high response rate in patients with HER2-positive metastatic breast cancer (HER2+ mBC).
The combination therapy's performance, particularly in a patient population with limited treatment options, was favorably received by key opinion leaders (KOLs). ALX Oncology's management has decided to progress evo into the second-line (2L) HER2+ mBC treatment setting based on these findings.
Despite the promising data, details regarding the combination partner or control arm for the future study have not been disclosed. The evolving treatment landscape for first-line (1L) therapies is cited as a reason for this. ALX Oncology has indicated that more information on the next steps will be shared around the time of the JPM25 conference.
The recent data has been characterized as a positive development for ALX Oncology, aligning with a significant commercial opportunity in the 2L HER2+ mBC market. This represents a shift from the company's previous focus on HER2+ gastric cancer, which presented more challenges for commercial viability.
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