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Investing.com - Clear Street has reiterated its Buy rating and $32.00 price target on ArriVent BioPharma (NASDAQ:AVBP), currently trading at $21.1, following the July 2 approval of competitor drug sunvozertinib (ZEGFROVY) for second-line EGFR exon20ins non-small cell lung cancer. The $722M market cap company has attracted a strong analyst consensus, with targets ranging from $37 to $45. According to InvestingPro analysis, the stock appears overvalued at current levels.
The research firm maintains its positive outlook on ArriVent despite sunvozertinib demonstrating efficacy comparable to ArriVent’s firmonertinib, with both drugs showing a 78.6% objective response rate, though firmonertinib showed a slightly longer median progression-free survival of 12.4 months versus 10.7 months. InvestingPro data reveals the company holds more cash than debt on its balance sheet, providing financial flexibility for continued development.
ArriVent completed Phase 3 Furvent enrollment in the first quarter of 2025, ahead of sunvozertinib’s Phase 3 Wu-Kong28 trial completion in the second quarter, and will announce data release timing in the coming weeks, maintaining its lead in the development timeline. Investors should note the company’s next earnings report is scheduled for August 13, 2025.
Clear Street bases its valuation on a conservative 40% peak penetration estimate for firmonertinib, noting the drug’s established four-year commercial safety record in China as a factor limiting the competitive impact on ArriVent’s market position.
The firm concludes that sunvozertinib’s approval has limited impact on ArriVent BioPharma’s valuation, supporting its maintained Buy rating and $32 price target.
In other recent news, ArriVent BioPharma announced a $75 million public offering of common stock and pre-funded warrants, with the proceeds intended to support the development of its lead candidate, firmonertinib, and other pipeline programs. The offering is being managed by Goldman Sachs, Citigroup (NYSE:C), and Guggenheim Securities. H.C. Wainwright maintained a Buy rating on ArriVent, raising the stock target to $40, following promising results from the Phase 1b FURTHER trial of firmonertinib in non-small cell lung cancer patients with EGFR PACC mutations. The trial showed a median progression-free survival of 16 months at the 240mg dose, with notable efficacy in patients with brain metastases. ArriVent also reported that the drug has a generally well-tolerated safety profile and plans to advance it to a global Phase 3 trial. Additionally, the company appointed Dr. Merdad Parsey to its Board of Directors, bringing his extensive clinical development experience to ArriVent as it progresses its pipeline. These developments highlight ArriVent’s ongoing efforts to address unmet medical needs in cancer care.
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