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On Friday, Cantor Fitzgerald analyst Josh Schimmer reiterated an Overweight rating and a $200.00 price target on Janux Therapeutics (NASDAQ:JANX), representing a significant upside from the current price of $32.01. With a market capitalization of $1.85 billion, InvestingPro data shows the stock is currently trading near its Fair Value. Schimmer’s comments highlighted the company’s progress in evaluating its ’007 therapy across various patient groups and treatment combinations. Janux Therapeutics is actively refining its Phase 3 protocols for ’007, which is being tested in taxane-naive patients, in combination with androgen receptor inhibitors (ARI), and as a second or third-line therapy in androgen receptor (AR) refractory patients.
The estimated cost for each study is projected to be between $200 million and $250 million. According to InvestingPro analysis, Janux maintains a strong financial position with more cash than debt and a current ratio of 59.21, providing ample liquidity for these studies. Schimmer noted that the early data for ’007 has shown promising results, although some clinical responses were interrupted due to treatment disruption. The cytokine release syndrome (CRS) associated with ’007 is generally manageable with the right protocols, according to the analyst.
Despite concerns raised by investors over a patient blog post detailing a Grade 3 CRS event, Schimmer suggested that this could be an isolated incident possibly related to a higher dose cohort or a less than optimal CRS prophylaxis regimen. He emphasized that if Grade 3 CRS events are infrequent with ’007, they could be mitigated with increased monitoring until patients complete their initial treatment cycles, after which the risk of CRS significantly decreases.
Schimmer expects ’007 to provide a meaningful progression-free survival (PFS) and overall survival (OS) benefit, which would outweigh the concern of a low incidence of Grade 3 CRS in terms of drug adoption. While the stock has experienced a 40% decline year-to-date, InvestingPro subscribers have access to 8 additional exclusive insights about JANX’s potential. Janux Therapeutics is also exploring a bi-weekly (Q2W) dosing regimen and the potential for a subcutaneous (s.c.) delivery method, which could improve patient access. The firm is in the process of determining what CRS mitigation strategies may be necessary for a subcutaneous option. Schimmer pointed out that missing a single weekly dose did not negatively affect patient outcomes, supporting the viability of a Q2W dosing strategy.
In other recent news, Janux Therapeutics has been the subject of multiple analyst evaluations and updates regarding its promising drug candidate, JANX007, for metastatic castration-resistant prostate cancer (mCRPC). BTIG maintained its Buy rating and set a $100 price target, noting the competitive positioning of JANX007, which showed a 100% PSA50 response rate that was durable at 12 weeks. Clear Street initiated coverage with a Buy rating and an $80 price target, expressing optimism about JANX007’s potential to impact the $5 billion prostate cancer market. Scotiabank (TSX:BNS) increased its price target to $62, citing promising Phase 1 trial results while maintaining a Sector Perform rating. Jones Trading raised its price target to $105, highlighting the potential for JANX007 to be used in earlier lines of therapy and the positive implications for Janux’s broader pipeline. TD Cowen reiterated a Buy rating, emphasizing the candidate’s impressive PSA reduction rates and minimal toxicity. These recent developments reflect analysts’ confidence in Janux’s clinical strategy and the potential impact of its pipeline in the oncology market.
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