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On Tuesday, Cantor Fitzgerald reiterated its confidence in ORIC Pharmaceuticals (NASDAQ:ORIC), maintaining an Overweight stock rating. Trading at $11.49, ORIC has seen analyst targets ranging from $13 to $25, suggesting significant upside potential. The firm’s analyst highlighted the potential of ORIC’s prostate cancer treatment, mevrometostat, emphasizing its significance in the upcoming clinical trial results. The analyst projected that if the relative Progression-Free Survival (rPFS) Hazard Ratio (HR) is below 0.7, it would be considered meaningful and could substantially boost confidence in the treatment’s effectiveness against prostate cancer. According to InvestingPro, the company maintains a strong financial health score of 2.52, rated as "Good."
The firm’s optimistic outlook suggests that ORIC stock could surge by 50-100% if the trial results meet these expectations. Despite a recent 13.1% decline over the past week, ORIC has demonstrated strong momentum with a 25.77% gain year-to-date. The current valuation of ORIC Pharmaceuticals, according to Cantor Fitzgerald, does not fully account for its prostate cancer treatment potential. The analyst believes that the company’s lung cancer asset, which is seen as de-risked and potentially best-in-class, justifies a valuation of approximately $10 per share of their net present value (NPV) risk-adjusted valuation, with additional upside anticipated as more clinical data becomes available in 2025. For deeper insights into ORIC’s valuation metrics and growth potential, consider exploring InvestingPro, which offers exclusive financial analysis and forecasting tools.
The assessment also notes that the market has not yet priced in the full potential of ORIC’s prostate cancer treatment. With a robust current ratio of 13.15 and more cash than debt on its balance sheet, ORIC appears well-positioned to fund its clinical developments. The outcome of the rPFS data could pave the way for ORIC-944 to become a multi-blockbuster opportunity, should the magnitude of the rPFS benefit prove to be significant. The anticipation of these clinical trial results has positioned ORIC Pharmaceuticals favorably in the eyes of Cantor Fitzgerald, as the company awaits the forthcoming data that could potentially transform its market valuation.
In other recent news, ORIC Pharmaceuticals has been making significant strides in its clinical trials. Citi reaffirmed its Buy rating for the company, anticipating a substantial rise in stock value following the publication of Pfizer (NYSE:PFE)’s ASCO GU late breaker abstract. This abstract is expected to reveal key data comparing the combination of mevrometostat and XTANDI to XTANDI alone in treating metastatic castration-resistant prostate cancer (mCRPC).
ORIC Pharmaceuticals is concurrently developing ORIC-944, a molecule that targets the same PRC2 complex as mevrometostat but focuses on the EED subunit. Pfizer’s confidence in mevrometostat is evident as it advances into two Phase 3 trials and plans a third Phase 3 trial in 2025.
In line with these developments, ORIC Pharmaceuticals has shared updates on its ongoing trials, including early data for ORIC-944, and announced a new collaboration with Johnson & Johnson for ORIC-114. The company has secured a $125 million private investment, extending its cash runway into late 2026.
These recent developments at ORIC Pharmaceuticals highlight the company’s progress in its clinical trials and collaborations, all while maintaining a strong financial position.
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