Bullish indicating open at $55-$60, IPO prices at $37
Tuesday, Cantor Fitzgerald reaffirmed its Overweight rating on ORIC Pharmaceuticals (NASDAQ:ORIC) stock, maintaining a positive outlook on the company’s future. The research firm’s analyst expressed confidence in ORIC’s management and the potential of its drug candidate ORIC-944, which is being developed for the treatment of prostate cancer. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period, with price targets ranging from $12 to $25 per share.
The analyst highlighted that ORIC’s management is optimistic about replicating the initial positive response rates seen in the Prostate-Specific Antigen (PSA) readings for ORIC-944 in a larger group of patients. The initial data showed a PSA50 response rate of 50% and a PSA90 of over 30%, indicating signs of efficacy differentiation when compared to Pfizer (NYSE:PFE)’s mevrometostat, which has a similar mechanism of action. While the company is currently unprofitable, InvestingPro analysis shows it maintains a strong financial position with a current ratio of 12.0 and more cash than debt on its balance sheet.
According to the analyst, the upcoming update for ORIC-944 could be a significant positive catalyst for the company’s stock. They recommended buying ORIC shares ahead of this anticipated development. The Key Opinion Leader (KOL) feedback on this drug mechanism, alongside Pfizer’s mevrometostat data presented at the ASCO-GU conference, has been overwhelmingly positive. The Pfizer drug demonstrated a hazard ratio (HR) of 0.51 for radiographic progression-free survival (rPFS) and a median progression-free survival (PFS) benefit of approximately 8 months over Xtandi.
The market capitalization of ORIC Pharmaceuticals currently stands at $350 million. The analyst believes that the market has not fully appreciated the potential multibillion-dollar opportunity that ORIC-944 represents for the treatment of prostate cancer. The upcoming weeks are expected to be pivotal for ORIC as they prepare to release more data on ORIC-944, which could further demonstrate the drug’s efficacy and market potential.
In other recent news, ORIC Pharmaceuticals has caught the attention of analysts and investors with several significant developments. H.C. Wainwright analyst Robert Burns has raised the price target for ORIC Pharmaceuticals to $22, maintaining a Buy rating on the stock. This decision is supported by upcoming catalysts, including the anticipated presentation of Phase 1b results for ORIC-114 in various cancer treatments expected in the second half of 2025. Furthermore, results from dose escalation studies for ORIC-944 in combination with apalutamide or darolutamide are expected in the first half of 2025, with a subsequent update later in the year.
Additionally, ORIC Pharmaceuticals has presented promising preclinical data for ORIC-944 at the American Association for Cancer Research Annual Meeting. The data suggests that ORIC-944, in combination with androgen receptor pathway inhibitors, could improve progression-free survival in prostate cancer models. The company is currently evaluating ORIC-944 in a Phase 1b trial in combination with ERLEADA® and NUBEQA®. The drug has shown favorable results as a single agent, including robust target engagement and a favorable safety profile. These developments highlight ORIC Pharmaceuticals’ focus on advancing cancer treatment options and overcoming resistance in oncology therapies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.