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On Thursday, Cantor Fitzgerald reiterated its Overweight rating on shares of ORIC Pharmaceuticals (NASDAQ: ORIC), currently trading at $5.97, following the company’s announcement of promising Phase 1 data for its investigational drug ORIC-944. The oral PRC2 inhibitor is being developed to treat prostate cancer and has shown encouraging results. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $12 to $25.
According to the firm’s analysis, ORIC Pharmaceuticals reported that confirmed PSA50 responses—a measure of prostate-specific antigen reduction—are approximately 50% in a now larger sample size. This response rate suggests a potential differentiation from Pfizer (NYSE:PFE)’s mevrometostat, which has a similar mechanism of action and has demonstrated impressive progression-free survival (PFS) data in its Phase 2 trial. The hazard ratio (HR) for radiographic PFS (rPFS) with mevrometostat was reported at 0.51.
The analyst noted that the magnitude of PSA responses for ORIC-944 is comparable to other prostate-specific membrane antigen (PSMA)-directed treatments, which include radioligands, antibody-drug conjugates (ADCs), and T cell engagers. Furthermore, ORIC-944 is beginning to show early signs of safety differentiation, although more data is needed to confirm these findings. InvestingPro analysis shows the company maintains a strong financial position with a current ratio of 12.0 and more cash than debt on its balance sheet, providing runway for continued development.
The update from ORIC Pharmaceuticals was characterized as solid, with little to critique regarding efficacy and safety. The stock was observed to be trending up, with a pre-market increase of over 20%. With an adjusted market capitalization of $424.4 million and according to InvestingPro’s Fair Value analysis, the stock appears undervalued despite recent gains. The potential market opportunity for ORIC-944 in prostate cancer is seen as substantial, possibly reaching multi-blockbuster status if its profile remains consistent with that of mevrometostat. Discover more insights and 7 additional ProTips about ORIC’s financial health and growth potential with an InvestingPro subscription.
Looking forward, Cantor Fitzgerald anticipates additional data from ORIC’s ongoing trial later in the year. The firm also highlights that upcoming Phase 3 data from Pfizer’s mevrometostat in the first half of 2026 is expected to be a major catalyst for ORIC Pharmaceuticals.
In other recent news, ORIC Pharmaceuticals announced a private placement of approximately 19.2 million shares of common stock, raising about $125 million. This financing, led by SR One and including investors such as Point72 and Viking Global Investors, is expected to support operations through the second half of 2027. JPMorgan maintained its Overweight rating for ORIC Pharmaceuticals with a $20 price target, highlighting the potential of ORIC-944 in prostate cancer treatment. Cantor Fitzgerald also reaffirmed its Overweight rating, expressing confidence in ORIC’s management and the promising efficacy of ORIC-944. H.C. Wainwright raised its price target for ORIC Pharmaceuticals to $22, citing upcoming results from various cancer treatment trials as key catalysts for the company’s progress.
ORIC-944, a key drug candidate, has shown promise in preclinical data for improving progression-free survival in prostate cancer models. The drug is currently being tested in a Phase 1b trial in combination with other prostate cancer medications. ORIC Pharmaceuticals is also advancing its ORIC-114 candidate, targeting specific mutations in genetically defined cancers. These developments reflect ORIC’s strategic efforts to enhance its oncology therapies and expand its research and development programs.
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