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Investing.com - Goldman Sachs resumed coverage of ArriVent BioPharma (NASDAQ:AVBP) on Thursday with a Buy rating and a price target of $33.00. The stock, currently trading at $21.34, has shown strong momentum with a 19% return over the past year. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $33 to $45.
The investment bank cited a high probability that Phase 3 FURVENT trial results will demonstrate competitive clinical efficacy in EGFRex20 non-small cell lung cancer (NSCLC).
Goldman Sachs defines competitive efficacy as progression-free survival greater than 10 months, based on its review of clinical data across multiple studies of firmonertinib.
The firm will also monitor safety and tolerability metrics including Grade 3+ diarrhea, rash, and discontinuation rates as part of its assessment.
Goldman Sachs noted that positive Phase 3 results would increase its probability of success assumption to 90% from 75%, implying a 9% upside to its discounted cash flow model and 57% upside from current trading levels.
In other recent news, ArriVent BioPharma has announced a $75 million public offering of common stock and pre-funded warrants, with Goldman Sachs, Citigroup (NYSE:C), and Guggenheim Securities acting as joint book-running managers. The company plans to use the proceeds to support development activities for its lead candidate, firmonertinib, and other pipeline programs. Additionally, ArriVent’s firmonertinib has shown promising results in clinical trials for non-small cell lung cancer (NSCLC) with EGFR PACC mutations. The Phase 1b FURTHER trial reported a median progression-free survival of 16.0 months at a 240 mg dose, with a 68.2% confirmed overall response rate.
Analyst firm H.C. Wainwright has reiterated its Buy rating for ArriVent, raising the price target to $40.00, citing the strong trial data as a significant factor. The drug also demonstrated efficacy in patients with brain metastases, achieving a confirmed central nervous system response rate of 53%. Clear Street also maintains a Buy rating with a $32.00 price target, despite the approval of a competitor drug. Both firms highlight the potential of firmonertinib to fill a treatment gap for NSCLC patients with specific genetic mutations. ArriVent plans to advance firmonertinib to a global Phase 3 trial, with enrollment expected in the second half of 2025.
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